I 
116TH CONGRESS 
2D SESSION 
H. R. 5837 
To amend the Internal Revenue Code of 1986 to permit treatment of child 
care payments as elective deferrals for purposes of employer matching 
contributions, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 10, 2020 
Mrs. WAGNER (for herself and Mr. JEFFRIES) 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 permit 
treatment of child care payments as elective deferrals 
for purposes of employer matching contributions, and 
for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Investing in Your 
Family’s Future Act’’. 
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SEC. 2. TREATMENT OF CHILD CARE PAYMENTS AS ELEC-
TIVE DEFERRALS FOR PURPOSES OF MATCH-
ING CONTRIBUTIONS. 
(a) IN GENERAL.—Subparagraph (A) of section 
401(m)(4) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘and’’ at the end of clause (i), by 
striking the period at the end of clause (ii) and inserting 
‘‘, and’’, and by adding at the end the following new 
clause: 
‘‘(iii) subject to the requirements of 
paragraph (13), any employer contribution 
made to a defined contribution plan on be-
half of an employee on account of a quali-
fied child care payment.’’. 
(b) QUALIFIED CHILD CARE PAYMENT.—Paragraph 
(4) of section 401(m) of the Internal Revenue Code of 
1986 is amended by adding at the end the following new 
subparagraph: 
‘‘(D) QUALIFIED CHILD CARE PAYMENT.— 
The term ‘qualified child care payment’ means 
any payment by an employee of employment-re-
lated expenses (within the meaning of section 
21(b)(2)), but only to the extent such payments 
in the aggregate for the year do not exceed an 
amount equal to 
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‘‘(i) the limitation applicable under 
section 402(g) for the year (or, if lesser, 
the employee’s compensation (as defined in 
section 415(c)(3)) for the year), reduced 
by 
‘‘(ii) the elective deferrals made by the 
employee for such year.’’. 
(c) MATCHING
CONTRIBUTIONS
FOR
QUALIFIED 
CHILD CARE PAYMENTS.—Subsection (m) of section 401 
of the Internal Revenue Code of 1986 is amended by re-
designating paragraph (13) as paragraph (14), and by in-
serting after paragraph (12) the following new paragraph: 
‘‘(13) MATCHING CONTRIBUTIONS FOR QUALI-
FIED CHILD CARE PAYMENTS.— 
‘‘(A) IN GENERAL.—For purposes of para-
graph (4)(A)(iii), an employer contribution 
made to a defined contribution plan on account 
of a qualified child care payment shall be treat-
ed as a matching contribution for purposes of 
this title if— 
‘‘(i) the plan provides matching con-
tributions on account of elective deferrals 
at the same rate as contributions on ac-
count of qualified child care payments, 
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‘‘(ii) the plan provides matching con-
tributions on account of qualified child 
care payments only on behalf of employees 
otherwise eligible to make elective defer-
rals, and 
‘‘(iii) under the plan, all employees el-
igible to receive matching contributions on 
account of elective deferrals are eligible to 
receive matching contributions on account 
of qualified child care payments. 
‘‘(B) TREATMENT FOR PURPOSES OF NON-
DISCRIMINATION RULES, ETC.— 
‘‘(i) NONDISCRIMINATION
RULES.— 
For purposes of subparagraph (A)(iii), 
subsection (a)(4), and section 410(b), 
matching contributions described in para-
graph (4)(A)(iii) shall not fail to be treated 
as available to an employee solely because 
such employee does not have employment- 
related expenses (within the meaning of 
section 21(b)(2)). 
‘‘(ii) CHILD
CARE
PAYMENTS
NOT 
TREATED
AS
PLAN
CONTRIBUTION.—Ex-
cept as provided in clause (iii), a qualified 
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child care payment shall not be treated as 
a contribution to a plan under this title. 
‘‘(iii) 
MATCHING
CONTRIBUTION 
RULES.—Solely for purposes of meeting 
the requirements of paragraph (11)(B) or 
(12) of this subsection, or paragraph 
(11)(B)(i)(II), (12)(B), or (13)(D) of sub-
section (k), a plan may treat a qualified 
child care payment as an elective deferral 
or an elective contribution, whichever is 
applicable.’’. 
(d) SIMPLE RETIREMENT ACCOUNTS.—Paragraph 
(2) of section 408(p) of the Internal Revenue Code of 
1986 is amended by adding at the end the following new 
subparagraph: 
‘‘(F) 
MATCHING
CONTRIBUTIONS
FOR 
QUALIFIED CHILD CARE PAYMENTS.— 
‘‘(i) IN
GENERAL.—Subject to the 
rules of clause (iii), an arrangement shall 
not fail to be treated as meeting the re-
quirements of subparagraph (A)(iii) solely 
because under the arrangement, solely for 
purposes of such subparagraph, qualified 
child 
care 
payments 
are 
treated 
as 
amounts elected by the employee under 
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subparagraph (A)(i)(I) to the extent such 
payments do not exceed— 
‘‘(I) the applicable dollar amount 
under subparagraph (E) (after appli-
cation of section 414(v)) for the year 
(or, if lesser, the employee’s com-
pensation 
(as 
defined 
in 
section 
415(c)(3)) for the year), reduced by 
‘‘(II) any other amounts elected 
by the employee under subparagraph 
(A)(i)(I) for the year. 
‘‘(ii) QUALIFIED
CHILD
CARE
PAY-
MENT.—For purposes of this subpara-
graph, the term ‘qualified child care pay-
ment’ means any payment by an employee 
of employment-related expenses (within the 
meaning of section 21(b)(2)). 
‘‘(iii) APPLICABLE RULES.—Clause (i) 
shall apply to an arrangement only if, 
under the arrangement— 
‘‘(I) matching contributions on 
account of qualified child care pay-
ments are provided only on behalf of 
employees otherwise eligible to elect 
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contributions 
under 
subparagraph 
(A)(i)(I), and 
‘‘(II) all employees otherwise eli-
gible to participate in the arrange-
ment are eligible to receive matching 
contributions on account of qualified 
child care payments.’’. 
(e) 403(b) PLANS.—Subparagraph (A) of section 
403(b)(12) of the Internal Revenue Code of 1986 is 
amended by adding at the end the following: ‘‘The fact 
that the employer offers matching contributions on ac-
count of qualified child care payments as described in sec-
tion 401(m)(13) shall not be taken into account in deter-
mining whether the arrangement satisfies the require-
ments of clause (ii) (and any regulation thereunder).’’. 
(f) 457(b) PLANS.—Subsection (b) of section 457 of 
the Internal Revenue Code of 1986 is amended by adding 
at the end the following: ‘‘A plan which is established and 
maintained by an employer which is described in sub-
section (e)(1)(A) shall not be treated as failing to meet 
the requirements of this subsection solely because the 
plan, or another plan maintained by the employer which 
meets the requirements of section 401(a), provides for 
matching contributions on account of qualified child care 
payments as described in section 401(m)(13).’’. 
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(g) REGULATORY AUTHORITY.—The Secretary shall 
prescribe regulations for purposes of implementing the 
amendments made by this section, including regulations— 
(1) permitting a plan to make matching con-
tributions for qualified child care payments, as de-
fined in sections 401(m)(4)(D) and 408(p)(2)(F) of 
the Internal Revenue Code of 1986, as added by this 
section, at a different frequency than matching con-
tributions are otherwise made under the plan, pro-
vided that the frequency is not less than annually; 
(2) permitting employers to establish reasonable 
procedures to claim matching contributions for such 
qualified child care payments under the plan, includ-
ing an annual deadline (not earlier than 3 months 
after the close of each plan year) by which a claim 
must be made; and 
(3) promulgating model amendments which 
plans may adopt to implement matching contribu-
tions on such qualified child care payments for pur-
poses of sections 401(m), 408(p), 403(b), and 
457(b) of the Internal Revenue Code of 1986. 
(h) EFFECTIVE DATE.—The amendments made by 
this section shall apply to contributions made for years 
beginning after December 31, 2020. 
Æ 
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