Family Savings for Kids and Seniors Act

I 116TH CONGRESS 1ST SESSION H. R. 1985 To amend the Internal Revenue Code of 1986 to increase the exclusion for employer-provided dependent care assistance including the limitation on dependent care flexible spending arrangements. IN THE HOUSE OF REPRESENTATIVES MARCH 28, 2019 Ms. PORTER (for herself and Ms. HERRERA BEUTLER) 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 increase the exclusion for employer-provided dependent care as- sistance including the limitation on dependent care flexi- ble spending arrangements. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Family Savings for 4 Kids and Seniors Act’’. 5 VerDate Sep 11 2014 00:22 Apr 12, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H1985.IH H1985 kjohnson on DSK79L0C42 with BILLS 2 •HR 1985 IH SEC. 2. INCREASE IN EXCLUSION FOR EMPLOYER-PRO- 1 VIDED DEPENDENT CARE ASSISTANCE IN- 2 CLUDING DEPENDENT CARE FLEXIBLE 3 SPENDING ARRANGEMENTS. 4 (a) INCREASE TO TAKE INTO ACCOUNT INFLATION 5 SINCE 1986.—Section 129(a)(2) of the Internal Revenue 6 Code of 1986 is amended by adding at the end the fol- 7 lowing new subparagraph: 8 ‘‘(D) INFLATION ADJUSTMENT.—In the 9 case of any taxable year beginning in a calendar 10 year after 2019, the $5,000 amount in subpara- 11 graph (A) shall be increased by an amount 12 equal to— 13 ‘‘(i) such dollar amount, multiplied by 14 ‘‘(ii) the cost-of-living adjustment de- 15 termined under section 1(f)(3) for the cal- 16 endar year in which the taxable year be- 17 gins, determined by substituting ‘calendar 18 year 1986’ for ‘calendar year 2016’ in sub- 19 paragraph (A)(ii) thereof. 20 If any increase determined under this para- 21 graph is not a multiple of $100, such increase 22 shall be rounded to the next lowest multiple of 23 $100.’’. 24 VerDate Sep 11 2014 04:39 Apr 12, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H1985.IH H1985 kjohnson on DSK79L0C42 with BILLS 3 •HR 1985 IH (b) CONFORMING AMENDMENT.—Section 1 129(a)(2)(A) of such Code is amended by striking 2 ‘‘$2,500’’ and inserting ‘‘half such dollar amount’’. 3 (c) EFFECTIVE DATE.—The amendments made by 4 this section shall apply to taxable years beginning after 5 December 31, 2019. 6 Æ VerDate Sep 11 2014 04:39 Apr 12, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\H1985.IH H1985 kjohnson on DSK79L0C42 with BILLS