Expanding Access to Retirement Savings for Caregivers Act

I 116TH CONGRESS 1ST SESSION H. R. 3078 To amend the Internal Revenue Code of 1986 to reduce the age for making catch-up contributions to retirement accounts to take into account time out of the workforce to provide dependent care services. IN THE HOUSE OF REPRESENTATIVES JUNE 4, 2019 Mr. ROUDA (for himself and Mrs. WALORSKI) 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 reduce the age for making catch-up contributions to retirement accounts to take into account time out of the workforce to provide dependent care services. 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 ‘‘Expanding Access to 4 Retirement Savings for Caregivers Act’’. 5 VerDate Sep 11 2014 04:11 Jun 12, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H3078.IH H3078 kjohnson on DSK79L0C42 with BILLS 2 •HR 3078 IH SEC. 2. REDUCTION OF AGE FOR MAKING CATCH-UP CON- 1 TRIBUTIONS FOR INDIVIDUALS OUT OF 2 WORKFORCE TO PROVIDE DEPENDENT CARE 3 SERVICES. 4 (a) INDIVIDUAL RETIREMENT PLANS.—Section 5 219(b)(5) of the Internal Revenue Code of 1986 is amend- 6 ed by adding at the end the following new subparagraph: 7 ‘‘(D) REDUCTION OF AGE FOR MAKING 8 CATCH-UP CONTRIBUTIONS FOR INDIVIDUALS 9 OUT OF WORKFORCE TO PROVIDE DEPENDENT 10 CARE SERVICES.— 11 ‘‘(i) IN GENERAL.—In the case of an 12 eligible individual, subparagraph (B)(i) 13 shall be applied by substituting ‘the appli- 14 cable age with respect to such individual’ 15 for ‘the age of 50’. 16 ‘‘(ii) APPLICABLE AGE.—For purposes 17 of this subparagraph, the term ‘applicable 18 age’ means, with respect to any eligible in- 19 dividual for any taxable year, 50 reduced 20 by the number of years which is equal to 21 the duration of the aggregate qualified un- 22 employment periods with respect to such 23 individual (determined as of the beginning 24 of such taxable year). For purposes of the 25 preceding sentence any duration of aggre- 26 VerDate Sep 11 2014 04:11 Jun 12, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H3078.IH H3078 kjohnson on DSK79L0C42 with BILLS 3 •HR 3078 IH gate qualified unemployment periods which 1 is not a multiple of a whole number of 2 years shall be rounded to the next lowest 3 whole number of years. 4 ‘‘(iii) ELIGIBLE INDIVIDUAL.—For 5 purposes of this subparagraph, the term 6 ‘eligible individual’ means, with respect to 7 any taxable year, any individual who has 8 one or more qualified unemployment peri- 9 ods determined as of the beginning of such 10 taxable year. 11 ‘‘(iv) QUALIFIED UNEMPLOYMENT PE- 12 RIOD.—For purposes of this subparagraph, 13 the term ‘qualified unemployment period’ 14 means, with respect to any individual, any 15 uninterrupted period— 16 ‘‘(I) which is not less than 1 17 year, 18 ‘‘(II) which begins after such in- 19 dividual attains age 18, and 20 ‘‘(III) during which such indi- 21 vidual has no earned income (as de- 22 fined in section 32(c)(2)) on account 23 of such individual’s provision of care 24 VerDate Sep 11 2014 04:11 Jun 12, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H3078.IH H3078 kjohnson on DSK79L0C42 with BILLS 4 •HR 3078 IH to one or more qualifying individuals 1 (as defined in section 21(b)(1)). 2 ‘‘(v) DECLARATION REQUIREMENT.— 3 A qualified unemployment period shall not 4 be taken into account under this subpara- 5 graph with respect to any individual unless 6 such individual has submitted to the Sec- 7 retary a written declaration made under 8 the penalties of perjury that such period 9 meets the requirements of clause (iv) with 10 respect to such individual. The trustee may 11 rely on such declaration unless the trustee 12 knows, or has reason to know, that such 13 declaration is false.’’. 14 (b) ELECTIVE DEFERRALS.—Section 414(v) of such 15 Code is amended by adding at the end the following new 16 paragraph: 17 ‘‘(7) REDUCTION OF AGE FOR MAKING CATCH- 18 UP CONTRIBUTIONS FOR INDIVIDUALS OUT OF 19 WORKFORCE TO PROVIDE DEPENDENT CARE SERV- 20 ICES.— 21 ‘‘(A) IN GENERAL.—In the case of an eligi- 22 ble participant, paragraph (5)(A) shall be ap- 23 plied by substituting ‘the applicable age with re- 24 spect to such participant’ for ‘age 50’. 25 VerDate Sep 11 2014 04:11 Jun 12, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H3078.IH H3078 kjohnson on DSK79L0C42 with BILLS 5 •HR 3078 IH ‘‘(B) APPLICATION OF DEFINITIONS AND 1 RULES.—For purposes of this paragraph, 2 clauses (ii), (iii), (iv), and (v) of section 3 219(b)(5)(D) shall apply— 4 ‘‘(i) by substituting ‘participant’ for 5 ‘individual’ each place it appears in such 6 clauses, and 7 ‘‘(ii) by substituting ‘plan adminis- 8 trator’ for ‘trustee’ in such clause (v). 9 ‘‘(C) ERROR CORRECTION.—The Secretary 10 shall issue regulations or other guidance under 11 which an applicable employer plan may correct 12 for an impermissible catch-up contribution by 13 providing for a distribution of such contribution 14 together with any earnings properly attributable 15 thereto.’’. 16 (c) EFFECTIVE DATE.—The amendments made by 17 this section shall apply to taxable years beginning after 18 the date of the enactment of this Act. 19 Æ VerDate Sep 11 2014 04:11 Jun 12, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6301 E:\BILLS\H3078.IH H3078 kjohnson on DSK79L0C42 with BILLS