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House Bill 1932
116th Congress(2019-2020)
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.
Introduced
Introduced
Introduced in House on Mar 27, 2019
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Introduced in House 
Mar 27, 2019
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Introduced in House(Mar 27, 2019)
Mar 27, 2019
Not Scanned for Linkage
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Multiple bills can contain the same text. This could be an identical bill in the opposite chamber or a smaller bill with a section embedded in a larger bill.
Bill Sponsor regularly scans bill texts to find sections that are contained in other bill texts. When a matching section is found, the bills containing that section can be viewed by clicking "View Bills" within the bill text section.
Bill Sponsor is currently only finding exact word-for-word section matches. In a future release, partial matches will be included.
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H. R. 1932 (Introduced-in-House)


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. Sánchez, 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 Representatives of the United States of America in Congress assembled,

SECTION 1. Treating excluded difficulty of care payments as compensation for determining retirement contribution limitations.

(a) Individual retirement accounts.—

(1) IN GENERAL.—Section 408(o) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:

“(5) SPECIAL RULE FOR DIFFICULTY OF CARE PAYMENTS EXCLUDED FROM GROSS INCOME.—In the case of an individual who for a taxable year excludes from gross income under section 131 a qualified foster care payment which is a difficulty of care payment, if—

“(A) the deductible amount in effect for the taxable year under subsection (b), exceeds

“(B) the amount of compensation includible in the individual’s gross income for the taxable year,

the individual may elect to increase the nondeductible limit under paragraph (2) for the taxable year by an amount equal to the lesser of such excess or the amount so excluded.”.

(2) EFFECTIVE DATE.—The amendments made by this section shall apply to contributions after the date of the enactment of this Act.

(b) Defined contribution plans.—Section 415(c) of such Code is amended by adding at the end the following new paragraph:

“(8) SPECIAL RULE FOR DIFFICULTY OF CARE PAYMENTS EXCLUDED FROM GROSS INCOME.—

“(A) IN GENERAL.—For purposes of paragraph (1)(B), in the case of an individual who for a taxable year excludes from gross income under section 131 a qualified foster care payment which is a difficulty of care payment, the participant’s compensation, or earned income, as the case may be, shall be increased by the amount so excluded.

“(B) CONTRIBUTIONS ALLOCABLE TO DIFFICULTY OF CARE PAYMENTS TREATED AS AFTER-TAX.—Any contribution by the participant which is allocable to an amount so excluded—

“(i) shall be treated for purposes of this title as investment in the contract, and

“(ii) shall not cause a plan (and any arrangement which is part of such plan) to be treated as failing to meet any requirements of this chapter solely by reason of allowing any such contributions.”.

(c) Effective date.—The amendment made by this subsection shall apply to plan years beginning after December 31, 2015.