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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 10182 Introduced in House (IH)]

<DOC>

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.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Caregiver Financial Relief Act''.

SEC. 2. WAIVER OF 10-PERCENT ADDITIONAL TAX ON EARLY DISTRIBUTIONS FROM 
              QUALIFIED RETIREMENT PLANS IN THE CASE OF WITHDRAWALS FOR 
              FAMILY CAREGIVING EXPENSES.

    (a) In General.--Section 72(t)(2) of the Internal Revenue Code of 
1986 is amended by adding at the end the following new subparagraph:
                    ``(N) Distributions from retirement plans in case 
                of family caregiving expenses.--
                            ``(i) In general.--Any qualified family 
                        caregiving distribution.
                            ``(ii) Limitation.--The aggregate amount 
                        which may be treated as a qualified family 
                        caregiving distribution by any individual shall 
                        not exceed $10,000.
                            ``(iii) Qualified family caregiving 
                        distribution.--For purposes of this 
                        subparagraph, the term `qualified family 
                        caregiving distribution' means a distribution 
                        from an applicable eligible retirement plan to 
                        an individual for amounts paid during the 
                        taxable year for family caregiving expenses.
                            ``(iv) Applicable eligible retirement 
                        plan.--The term `applicable eligible retirement 
                        plan' means an eligible retirement plan (as 
                        defined in paragraph (H)(vi)(I)).
                            ``(v) Family caregiving expenses.--For 
                        purposes of this subparagraph--
                                    ``(I) In general.--Subject to 
                                subclause (III), the term `family 
                                caregiving expenses' means expenditures 
                                for goods, services, and supports 
                                that--
                                            ``(aa) assist a qualified 
                                        care recipient with 
                                        accomplishing activities of 
                                        daily living (as defined in 
                                        section 7702B(c)(2)(B)) and 
                                        instrumental activities of 
                                        daily living (as defined in 
                                        section 1915(k)(6)(F) of the 
                                        Social Security Act (42 U.S.C. 
                                        1396n(k)(6)(F))), and
                                            ``(bb) are provided solely 
                                        for use by such qualified care 
                                        recipient.
                                    ``(II) Goods, services, and 
                                supports.--For purposes of subclause 
                                (I), goods, services, and supports (as 
                                defined by the Secretary) shall 
                                include--
                                            ``(aa) human assistance, 
                                        supervision, cuing and standby 
                                        assistance,
                                            ``(bb) assistive 
                                        technologies and devices 
                                        (including remote health 
                                        monitoring),
                                            ``(cc) environmental 
                                        modifications (including home 
                                        modifications),
                                            ``(dd) health maintenance 
                                        tasks (such as medication 
                                        management),
                                            ``(ee) information,
                                            ``(ff) transportation of 
                                        the qualified care recipient,
                                            ``(gg) non-health items 
                                        (such as incontinence 
                                        supplies), and
                                            ``(hh) coordination of and 
                                        services for people who live in 
                                        their own home, a residential 
                                        setting, or a nursing facility, 
                                        as well as the cost of care in 
                                        these or other locations.
                                    ``(III) Family caregiving expenses 
                                for eligible caregivers.--For purposes 
                                of subclause (I), the following shall 
                                be treated as family caregiving 
                                expenses if paid or incurred by an 
                                eligible caregiver:
                                            ``(aa) Expenditures for 
                                        respite care for a qualified 
                                        care recipient.
                                            ``(bb) Expenditures for 
                                        counseling, support groups, or 
                                        training relating to caring for 
                                        a qualified care recipient.
                                            ``(cc) Lost wages for 
                                        unpaid time off due to caring 
                                        for a qualified care recipient 
                                        as verified by an employer.
                                            ``(dd) Travel costs of the 
                                        eligible caregiver related to 
                                        caring for a qualified care 
                                        recipient.
                                            ``(ee) Expenditures for 
                                        technologies, as determined by 
                                        the Secretary, that assist an 
                                        eligible caregiver in providing 
                                        care for a qualified care 
                                        recipient.
                                    ``(IV) Human assistance.--The term 
                                `human assistance' includes the costs 
                                of a direct care worker.
                                    ``(V) Documentation.--An expense 
                                shall not be taken into account under 
                                this section unless the eligible 
                                caregiver substantiates such expense 
                                under such regulations or guidance as 
                                the Secretary shall provide.
                                    ``(VI) Mileage rate.--For purposes 
                                of this section, the mileage rate for 
                                the use of a passenger automobile shall 
                                be the standard mileage rate used to 
                                calculate the deductible costs of 
                                operating an automobile for medical 
                                purposes. Such rate may be used in lieu 
                                of actual automobile-related travel 
                                expenses.
                                    ``(VII) Coordination with able 
                                accounts.--Family caregiving expenses 
                                for a taxable year shall not include 
                                contributions to an ABLE account (as 
                                defined in section 529A).
                            ``(vi) Eligible caregiver.--For purposes of 
                        this subparagraph, the term `eligible 
                        caregiver' means an individual who during the 
                        taxable year pays or incurs family caregiving 
                        expenses in connection with providing care for 
                        a qualified care recipient.
                            ``(vii) Qualified care recipient.--For 
                        purposes of this subparagraph--
                                    ``(I) In general.--The term 
                                `qualified care recipient' means, with 
                                respect to any taxable year, any 
                                individual who--
                                            ``(aa) is the spouse of the 
                                        eligible caregiver, or any 
                                        other person who bears a 
                                        relationship to the eligible 
                                        caregiver described in any of 
                                        subparagraphs (A) through (H) 
                                        of section 152(d)(2), and
                                            ``(bb) has been certified, 
                                        before the due date for filing 
                                        the return of tax for the 
                                        taxable year, by a licensed 
                                        health care practitioner (as 
                                        defined in section 7702B(c)(4)) 
                                        as being an individual with 
                                        long-term care needs described 
                                        in subclause (III) for a 
                                        period--

                                                    ``(AA) which is at 
                                                least 180 consecutive 
                                                days, and

                                                    ``(BB) a portion of 
                                                which occurs within the 
                                                taxable year.

                                    ``(II) Period for making 
                                certification.--A certification shall 
                                not be treated as valid unless it is 
                                made within the 39\1/2\-month period 
                                ending on the due date described in 
                                subclause (I)(bb)(or such other period 
                                as the Secretary prescribes).
                                    ``(III) Individuals with long-term 
                                care needs.--An individual is described 
                                in this subclause if the individual 
                                meets any of the following 
                                requirements:
                                            ``(aa) The individual is at 
                                        least 6 years of age and--

                                                    ``(AA) is unable to 
                                                perform (without 
                                                substantial assistance 
                                                from another 
                                                individual) at least 2 
                                                activities of daily 
                                                living (as defined in 
                                                section 7702B(c)(2)(B)) 
                                                due to a loss of 
                                                functional capacity, or

                                                    ``(BB) requires 
                                                substantial supervision 
                                                to protect such 
                                                individual from threats 
                                                to health and safety 
                                                due to severe cognitive 
                                                impairment and is 
                                                unable to perform, 
                                                without reminding or 
                                                cuing assistance, at 
                                                least 1 activity of 
                                                daily living (as so 
                                                defined) or to the 
                                                extent provided in 
                                                regulations prescribed 
                                                by the Secretary (in 
                                                consultation with the 
                                                Secretary of Health and 
                                                Human Services), is 
                                                unable to engage in age 
                                                appropriate activities.

                                            ``(bb) The individual is at 
                                        least 2 but not 6 years of age 
                                        and is unable due to a loss of 
                                        functional capacity to perform 
                                        (without substantial assistance 
                                        from another individual) at 
                                        least 2 of the following 
                                        activities: eating, 
                                        transferring, or mobility.
                                            ``(cc) The individual is 
                                        under 2 years of age and 
                                        requires specific durable 
                                        medical equipment by reason of 
                                        a severe health condition or 
                                        requires a skilled practitioner 
                                        trained to address the 
                                        individual's condition to be 
                                        available if the individual's 
                                        parents or guardians are 
                                        absent.
                            ``(viii) Amount distributed may be 
                        repaid.--Rules similar to the rules of 
                        subparagraph (H)(v) shall apply.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to distributions made after the date of the enactment of this Act.
                                 <all>
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