Older Americans Economic Security Act of 1993

Summary: Older Americans Economic Security Act of 1993 - Amends the Internal Revenue Code to allow a tax deduction for qualified elderly care expenses which exceed five percent of the taxpayer's adjusted gross income. 
Allows a charitable deduction to physicians and registered professional nurses for medical services or goods donated to elderly individuals. 
Allows tax-free withdrawals from individual retirement accounts to pay long-term care expenses or to purchase insurance covering such expenses.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Older Americans Economic Security 
Act of 1993''.

SEC. 2. TAX DEDUCTION FOR CARE OF CERTAIN ELDERLY INDIVIDUALS.

    (a) In General.--Part VII of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 (relating to additional itemized 
deductions for individuals) is amended by redesignating section 220 as 
section 221 and by inserting after section 219 the following new 
section:

``SEC. 220. EXPENSES FOR CARE OF CERTAIN ELDERLY INDIVIDUALS.

    ``(a) Allowance of Deduction.--In the case of an individual, there 
shall be allowed as a deduction an amount equal to the amount by which 
the qualified elderly care expenses paid by the taxpayer during the 
taxable year exceed 5 percent of the adjusted gross income of the 
taxpayer.
    ``(b) Definitions.--For purposes of this section--
            ``(1) Qualified elderly care expenses.--The term `qualified 
        elderly care expenses' means payments by the taxpayer for in-
        home custodial care--
                    ``(A) provided to any qualifying elderly 
                individual, and
                    ``(B) not compensated for by insurance or 
                otherwise.
            ``(2) Qualifying elderly individual.--The term `qualifying 
        elderly individual' means any individual--
                    ``(A) who has attained age 65 before the close of 
                the taxable year, and
                    ``(B) who is--
                            ``(i) a parent or grandparent of the 
                        taxpayer during the taxable year, or
                            ``(ii) a dependent (as defined in section 
                        152) of the taxpayer during the taxable year.
            ``(3) Custodial care.--The term `custodial care' means 
        services which constitute personal care and which do not entail 
        or require the continuing attention of trained medical or 
        paramedical personnel, such as help in walking and getting in 
        and out of bed, assistance in bathing, dressing, feeding, and 
        using a toilet, preparation of special diets, and supervision 
        over the taking of medication which would otherwise usually be 
        self-administered.
    ``(c) Special Rules.--
            ``(1) Determination of parents and grandparents.--Paragraph 
        (2) of section 152(b) (relating to rules relating to general 
        definition of dependent) shall apply to the determination of 
        whether any of the relationships specified in clause (i) of 
        subsection (b)(2)(B) exists.
            ``(2) Denial of double benefit.--No deduction or credit 
        shall be allowed under any other provision of this chapter with 
        respect to any amount for which a deduction is allowed under 
        subsection (a).''
    (b) Deduction Not Subject to Floor on Miscellaneous Itemized 
Deductions.--Subsection (b) of section 67 of such Code is amended by 
striking ``and'' at the end of paragraph (12), by striking the period 
at the end of paragraph (13) and inserting ``, and'', and by adding at 
the end thereof the following new paragraph:
            ``(14) the deduction under section 220 (relating to 
        expenses for care of certain elderly individuals).''
    (c) Clerical Amendment.--The table of sections for part VII of 
subchapter B of chapter 1 of such Code is amended by striking the last 
item and inserting the following new items:

                              ``Sec. 220. Expenses for care of certain 
                                        elderly individuals.
                              ``Sec. 221. Cross reference.''

SEC. 3. INCLUSION OF CERTAIN GOODS AND SERVICES DONATED BY PHYSICIANS 
              OR REGISTERED PROFESSIONAL NURSES TO ELDERLY INDIVIDUALS 
              AS CHARITABLE DEDUCTIONS.

    (a) In General.--Subsection (c) of section 170 of the Internal 
Revenue Code of 1986 (relating to charitable contribution defined) is 
amended by inserting after paragraph (5) the following new paragraph:
            ``(6) An individual who has attained age 65 and who is not 
        a member of the donor's family if the contribution or gift is 
        the rendering of medical services or the provision of medical 
        goods by a physician (as defined in section 213(d)(4)) or by a 
        registered professional nurse.''
    (b) Valuation of Goods and Services Donated.--Section 170 of such 
Code (relating to charitable, etc., contributions and gifts) is amended 
by redesignating subsection (m) as subsection (n) and by inserting 
after subsection (l) the following new subsection:
    ``(m) Valuation of Contributions and Gifts Described in Subsection 
(c)(6).--The value of contributions and gifts described in subsection 
(c)(6) shall be determined as if provided to an individual under the 
insurance program established by part B of title XVIII of the Social 
Security Act (42 U.S.C. ch. 7, subch. XVIII, part B), in accordance 
with the provisions of subsections (a) and (c) of section 1833 of such 
Act (42 U.S.C. 1395l).''

SEC. 4. TAX-FREE WITHDRAWALS FROM INDIVIDUAL RETIREMENT ACCOUNTS TO PAY 
              LONG-TERM CARE EXPENSES OR TO PURCHASE LONG-TERM CARE 
              INSURANCE.

    (a) In General.--Subsection (d) of section 408 of the Internal 
Revenue Code of 1986 (relating to tax treatment of distributions from 
individual retirement accounts) is amended by adding at the end the 
following new paragraph:
            ``(8) Distributions to pay long-term care expenses or 
        purchase long-term care insurance.--
                    ``(A) In general.--Paragraph (1) shall not apply to 
                any amount paid or distributed out of an individual 
                retirement account or individual retirement annuity to 
                the individual for whose benefit the account or annuity 
                is maintained if the entire amount received (including 
                money and any other property) is used, within 30 days 
                after the individual receives the payment or 
                distribution--
                            ``(i) to pay long-term care expenses of the 
                        individual, or
                            ``(ii) to purchase insurance covering such 
                        expenses.
                    ``(B) Long-term care expenses defined.--For 
                purposes of subparagraph (A), the term `long-term care 
                expenses' means, with respect to an individual, 
                expenses incurred by the individual for--
                            ``(i) custodial or health care provided to 
                        the individual in a nursing home, and
                            ``(ii) any goods or services provided to 
                        the individual outside a nursing home in 
                        connection with the provision of custodial or 
                        health care to the individual.''

SEC. 5. EFFECTIVE DATE.

    The amendments made by this Act shall apply to taxable years 
beginning after December 31, 1993.