I 

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. SA ́NCHEZ, 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. 

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

3 SECTION 1. TREATING EXCLUDED DIFFICULTY OF CARE 

4 PAYMENTS AS COMPENSATION FOR DETER5 MINING RETIREMENT CONTRIBUTION LIMI6 TATIONS. 

7 (a) INDIVIDUAL RETIREMENT ACCOUNTS.— 


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•HR 1932 IH

1 (1) IN GENERAL.—Section 408(o) of the Inter2 nal Revenue Code of 1986 is amended by adding at 

3 the end the following new paragraph: 

4 ‘‘(5) SPECIAL RULE FOR DIFFICULTY OF CARE

5 PAYMENTS EXCLUDED FROM GROSS INCOME.—In 

6 the case of an individual who for a taxable year ex7 cludes from gross income under section 131 a quali8 fied foster care payment which is a difficulty of care 

9 payment, if— 

10 ‘‘(A) the deductible amount in effect for 

11 the taxable year under subsection (b), exceeds 

12 ‘‘(B) the amount of compensation includ13 ible in the individual’s gross income for the tax14 able year, 

15 the individual may elect to increase the nondeduct16 ible limit under paragraph (2) for the taxable year 

17 by an amount equal to the lesser of such excess or 

18 the amount so excluded.’’. 

19 (2) EFFECTIVE DATE.—The amendments made 

20 by this section shall apply to contributions after the 

21 date of the enactment of this Act. 

22 (b) DEFINED CONTRIBUTION PLANS.—Section 

23 415(c) of such Code is amended by adding at the end the 

24 following new paragraph: 


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•HR 1932 IH

1 ‘‘(8) SPECIAL RULE FOR DIFFICULTY OF CARE

2 PAYMENTS EXCLUDED FROM GROSS INCOME.— 

3 ‘‘(A) IN GENERAL.—For purposes of para4 graph (1)(B), in the case of an individual who 

5 for a taxable year excludes from gross income 

6 under section 131 a qualified foster care pay7 ment which is a difficulty of care payment, the 

8 participant’s compensation, or earned income, 

9 as the case may be, shall be increased by the 

10 amount so excluded. 

11 ‘‘(B) CONTRIBUTIONS ALLOCABLE TO DIF12 FICULTY OF CARE PAYMENTS TREATED AS

13 AFTER-TAX.—Any contribution by the partici14 pant which is allocable to an amount so ex15 cluded— 

16 ‘‘(i) shall be treated for purposes of 

17 this title as investment in the contract, and 

18 ‘‘(ii) shall not cause a plan (and any 

19 arrangement which is part of such plan) to 

20 be treated as failing to meet any require21 ments of this chapter solely by reason of 

22 allowing any such contributions.’’. 


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•HR 1932 IH

1 (c) EFFECTIVE DATE.—The amendment made by 

2 this subsection shall apply to plan years beginning after 

3 December 31, 2015. 

Æ 


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