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I
116TH CONGRESS
1ST SESSION H. R. 1932
To amend the Internal Revenue Code of 1986 to treat as compensation
for purposes of retirement contribution limitations any difficulty of care
payments excluded from gross income.
IN THE HOUSE OF REPRESENTATIVES
MARCH 27, 2019
Ms. SCHRIER (for herself, Ms. DELBENE, Mr. PANETTA, Mr. THOMPSON of
California, Ms. SA´NCHEZ, Ms. JUDY CHU of California, and Mr. GOMEZ)
introduced the following bill; which was referred to the Committee on
Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to treat as
compensation for purposes of retirement contribution
limitations any difficulty of care payments excluded from
gross income.
Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled,
2
SECTION 1. TREATING EXCLUDED DIFFICULTY OF CARE
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PAYMENTS AS COMPENSATION FOR DETER-
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MINING RETIREMENT CONTRIBUTION LIMI-
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TATIONS.
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(a) INDIVIDUAL RETIREMENT ACCOUNTS.—
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•HR 1932 IH
(1) IN GENERAL.—Section 408(o) of the Inter-
1
nal Revenue Code of 1986 is amended by adding at
2
the end the following new paragraph:
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‘‘(5) SPECIAL RULE FOR DIFFICULTY OF CARE
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PAYMENTS
EXCLUDED
FROM
GROSS
INCOME.—In
5
the case of an individual who for a taxable year ex-
6
cludes from gross income under section 131 a quali-
7
fied foster care payment which is a difficulty of care
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payment, if—
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‘‘(A) the deductible amount in effect for
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the taxable year under subsection (b), exceeds
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‘‘(B) the amount of compensation includ-
12
ible in the individual’s gross income for the tax-
13
able year,
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the individual may elect to increase the nondeduct-
15
ible limit under paragraph (2) for the taxable year
16
by an amount equal to the lesser of such excess or
17
the amount so excluded.’’.
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(2) EFFECTIVE DATE.—The amendments made
19
by this section shall apply to contributions after the
20
date of the enactment of this Act.
21
(b)
DEFINED
CONTRIBUTION
PLANS.—Section
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415(c) of such Code is amended by adding at the end the
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following new paragraph:
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•HR 1932 IH
‘‘(8) SPECIAL RULE FOR DIFFICULTY OF CARE
1
PAYMENTS EXCLUDED FROM GROSS INCOME.—
2
‘‘(A) IN GENERAL.—For purposes of para-
3
graph (1)(B), in the case of an individual who
4
for a taxable year excludes from gross income
5
under section 131 a qualified foster care pay-
6
ment which is a difficulty of care payment, the
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participant’s compensation, or earned income,
8
as the case may be, shall be increased by the
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amount so excluded.
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‘‘(B) CONTRIBUTIONS ALLOCABLE TO DIF-
11
FICULTY
OF
CARE
PAYMENTS
TREATED
AS
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AFTER-TAX.—Any contribution by the partici-
13
pant which is allocable to an amount so ex-
14
cluded—
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‘‘(i) shall be treated for purposes of
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this title as investment in the contract, and
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‘‘(ii) shall not cause a plan (and any
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arrangement which is part of such plan) to
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be treated as failing to meet any require-
20
ments of this chapter solely by reason of
21
allowing any such contributions.’’.
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•HR 1932 IH
(c) EFFECTIVE DATE.—The amendment made by
1
this subsection shall apply to plan years beginning after
2
December 31, 2015.
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Æ
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