I 

118TH CONGRESS 

2D SESSION H. R. 10182 

To amend the Internal Revenue Code of 1986 to waive the 10-percent additional tax on early distributions from qualified retirement plans in the 

case of withdrawals for family caregiving expenses. 

IN THE HOUSE OF REPRESENTATIVES 

NOVEMBER 20, 2024 

Mr. GOTTHEIMER (for himself, Mr. CISCOMANI, Mr. LAWLER, Mr. SUOZZI, 

Ms. WASSERMAN SCHULTZ, Mr. SOTO, and Mrs. CHERFILUS-MCCORMICK) 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 waive 

the 10-percent additional tax on early distributions from 

qualified retirement plans in the case of withdrawals 

for family caregiving expenses. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Caregiver Financial 

5 Relief Act’’. 


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1 SEC. 2. WAIVER OF 10-PERCENT ADDITIONAL TAX ON 

2 EARLY DISTRIBUTIONS FROM QUALIFIED RE3 TIREMENT PLANS IN THE CASE OF WITH4 DRAWALS FOR FAMILY CAREGIVING EX5 PENSES. 

6 (a) IN GENERAL.—Section 72(t)(2) of the Internal 

7 Revenue Code of 1986 is amended by adding at the end 

8 the following new subparagraph: 

9 ‘‘(N) DISTRIBUTIONS FROM RETIREMENT

10 PLANS IN CASE OF FAMILY CAREGIVING EX11 PENSES.— 

12 ‘‘(i) IN GENERAL.—Any qualified fam13 ily caregiving distribution. 

14 ‘‘(ii) LIMITATION.—The aggregate 

15 amount which may be treated as a quali16 fied family caregiving distribution by any 

17 individual shall not exceed $10,000. 

18 ‘‘(iii) QUALIFIED FAMILY CAREGIVING

19 DISTRIBUTION.—For purposes of this sub20 paragraph, the term ‘qualified family 

21 caregiving distribution’ means a distribu22 tion from an applicable eligible retirement 

23 plan to an individual for amounts paid 

24 during the taxable year for family 

25 caregiving expenses. 


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1 ‘‘(iv) APPLICABLE ELIGIBLE RETIRE2 MENT PLAN.—The term ‘applicable eligible 

3 retirement plan’ means an eligible retire4 ment plan (as defined in paragraph 

5 (H)(vi)(I)). 

6 ‘‘(v) FAMILY CAREGIVING EX7 PENSES.—For purposes of this subpara8 graph— 

9 ‘‘(I) IN GENERAL.—Subject to 

10 subclause (III), the term ‘family 

11 caregiving expenses’ means expendi12 tures for goods, services, and supports 

13 that— 

14 ‘‘(aa) assist a qualified care 

15 recipient with accomplishing ac16 tivities of daily living (as defined 

17 in section 7702B(c)(2)(B)) and 

18 instrumental activities of daily 

19 living (as defined in section 

20 1915(k)(6)(F) of the Social Secu21 rity Act (42 U.S.C. 

22 1396n(k)(6)(F))), and 

23 ‘‘(bb) are provided solely for 

24 use by such qualified care recipi25 ent. 


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1 ‘‘(II) GOODS, SERVICES, AND

2 SUPPORTS.—For purposes of sub3 clause (I), goods, services, and sup4 ports (as defined by the Secretary) 

5 shall include— 

6 ‘‘(aa) human assistance, su7 pervision, cuing and standby as8 sistance, 

9 ‘‘(bb) assistive technologies 

10 and devices (including remote 

11 health monitoring), 

12 ‘‘(cc) environmental modi13 fications (including home modi14 fications), 

15 ‘‘(dd) health maintenance 

16 tasks (such as medication man17 agement), 

18 ‘‘(ee) information, 

19 ‘‘(ff) transportation of the 

20 qualified care recipient, 

21 ‘‘(gg) non-health items (such 

22 as incontinence supplies), and 

23 ‘‘(hh) coordination of and 

24 services for people who live in 

25 their own home, a residential setVerDate Sep 11 2014 00:44 Nov 26, 2024 Jkt 059200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H10182.IH H10182

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1 ting, or a nursing facility, as well 

2 as the cost of care in these or 

3 other locations. 

4 ‘‘(III) FAMILY CAREGIVING EX5 PENSES FOR ELIGIBLE CARE6 GIVERS.—For purposes of subclause 

7 (I), the following shall be treated as 

8 family caregiving expenses if paid or 

9 incurred by an eligible caregiver: 

10 ‘‘(aa) Expenditures for res11 pite care for a qualified care re12 cipient. 

13 ‘‘(bb) Expenditures for 

14 counseling, support groups, or 

15 training relating to caring for a 

16 qualified care recipient. 

17 ‘‘(cc) Lost wages for unpaid 

18 time off due to caring for a quali19 fied care recipient as verified by 

20 an employer. 

21 ‘‘(dd) Travel costs of the eli22 gible caregiver related to caring 

23 for a qualified care recipient. 

24 ‘‘(ee) Expenditures for tech25 nologies, as determined by the 


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1 Secretary, that assist an eligible 

2 caregiver in providing care for a 

3 qualified care recipient. 

4 ‘‘(IV) HUMAN ASSISTANCE.—The 

5 term ‘human assistance’ includes the 

6 costs of a direct care worker. 

7 ‘‘(V) DOCUMENTATION.—An ex8 pense shall not be taken into account 

9 under this section unless the eligible 

10 caregiver substantiates such expense 

11 under such regulations or guidance as 

12 the Secretary shall provide. 

13 ‘‘(VI) MILEAGE RATE.—For pur14 poses of this section, the mileage rate 

15 for the use of a passenger automobile 

16 shall be the standard mileage rate 

17 used to calculate the deductible costs 

18 of operating an automobile for med19 ical purposes. Such rate may be used 

20 in lieu of actual automobile-related 

21 travel expenses. 

22 ‘‘(VII) COORDINATION WITH

23 ABLE ACCOUNTS.—Family caregiving 

24 expenses for a taxable year shall not 


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1 include contributions to an ABLE ac2 count (as defined in section 529A). 

3 ‘‘(vi) ELIGIBLE CAREGIVER.—For 

4 purposes of this subparagraph, the term 

5 ‘eligible caregiver’ means an individual who 

6 during the taxable year pays or incurs 

7 family caregiving expenses in connection 

8 with providing care for a qualified care re9 cipient. 

10 ‘‘(vii) QUALIFIED CARE RECIPIENT.— 

11 For purposes of this subparagraph— 

12 ‘‘(I) IN GENERAL.—The term 

13 ‘qualified care recipient’ means, with 

14 respect to any taxable year, any indi15 vidual who— 

16 ‘‘(aa) is the spouse of the el17 igible caregiver, or any other per18 son who bears a relationship to 

19 the eligible caregiver described in 

20 any of subparagraphs (A) 

21 through (H) of section 152(d)(2), 

22 and 

23 ‘‘(bb) has been certified, be24 fore the due date for filing the 

25 return of tax for the taxable 


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1 year, by a licensed health care 

2 practitioner (as defined in section 

3 7702B(c)(4)) as being an indi4 vidual with long-term care needs 

5 described in subclause (III) for a 

6 period— 

7 ‘‘(AA) which is at least 

8 180 consecutive days, and 

9 ‘‘(BB) a portion of 

10 which occurs within the tax11 able year. 

12 ‘‘(II) PERIOD FOR MAKING CER13 TIFICATION.—A certification shall not 

14 be treated as valid unless it is made 

within the 391 15 ⁄2-month period ending 

16 on the due date described in subclause 

17 (I)(bb)(or such other period as the 

18 Secretary prescribes). 

19 ‘‘(III) INDIVIDUALS WITH LONG20 TERM CARE NEEDS.—An individual is 

21 described in this subclause if the indi22 vidual meets any of the following re23 quirements: 

24 ‘‘(aa) The individual is at 

25 least 6 years of age and— 


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1 ‘‘(AA) is unable to per2 form (without substantial 

3 assistance from another in4 dividual) at least 2 activities 

5 of daily living (as defined in 

6 section 7702B(c)(2)(B)) due 

7 to a loss of functional capac8 ity, or 

9 ‘‘(BB) requires sub10 stantial supervision to pro11 tect such individual from 

12 threats to health and safety 

13 due to severe cognitive im14 pairment and is unable to 

15 perform, without reminding 

16 or cuing assistance, at least 

17 1 activity of daily living (as 

18 so defined) or to the extent 

19 provided in regulations pre20 scribed by the Secretary (in 

21 consultation with the Sec22 retary of Health and Human 

23 Services), is unable to en24 gage in age appropriate ac25 tivities. 


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1 ‘‘(bb) The individual is at 

2 least 2 but not 6 years of age 

3 and is unable due to a loss of 

4 functional capacity to perform 

5 (without substantial assistance 

6 from another individual) at least 

7 2 of the following activities: eat8 ing, transferring, or mobility. 

9 ‘‘(cc) The individual is 

10 under 2 years of age and requires 

11 specific durable medical equip12 ment by reason of a severe health 

13 condition or requires a skilled 

14 practitioner trained to address 

15 the individual’s condition to be 

16 available if the individual’s par17 ents or guardians are absent. 

18 ‘‘(viii) AMOUNT DISTRIBUTED MAY BE

19 REPAID.—Rules similar to the rules of sub20 paragraph (H)(v) shall apply.’’. 

21 (b) EFFECTIVE DATE.—The amendment made by 

22 this section shall apply to distributions made after the 

23 date of the enactment of this Act. 

Æ 


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