To amend the Internal Revenue Code of 1986 to provide for a carryforward of unused benefits in health flexible spending arrangements.

Amends the Internal Revenue Code to permit up to $500 of unused health benefits in a plan or other arrangement that provides for a health flexible spending arrangement to be carried forward to the next year of such health flexible spending arrangement without affecting the status of such plan or arrangement as a tax-exempt employee benefit cafeteria plan. Terminates such carryforward after 2009.