Certain arrangements not treated as reimbursement arrangements
For purposes of subsection (a)(2)(A), an arrangement shall in no event be treated as a reimbursement or other expense allowance arrangement if—
(1)
(1)#
such arrangement does not require the employee to substantiate the expenses covered by the arrangement to the person providing the reimbursement, or
(2)#
such arrangement provides the employee the right to retain any amount in excess of the substantiated expenses covered under the arrangement.