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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. TREATING EXCLUDED DIFFICULTY OF CARE 
PAYMENTS AS COMPENSATION FOR DETER-
MINING RETIREMENT CONTRIBUTION LIMI-
TATIONS. 
(a) INDIVIDUAL RETIREMENT ACCOUNTS.— 
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(1) IN GENERAL.—Section 408(o) of the Inter-
nal Revenue Code of 1986 is amended by adding at 
the end the following new paragraph: 
‘‘(5) SPECIAL RULE FOR DIFFICULTY OF CARE 
PAYMENTS
EXCLUDED
FROM
GROSS
INCOME.—In 
the case of an individual who for a taxable year ex-
cludes from gross income under section 131 a quali-
fied foster care payment which is a difficulty of care 
payment, if— 
‘‘(A) the deductible amount in effect for 
the taxable year under subsection (b), exceeds 
‘‘(B) the amount of compensation includ-
ible in the individual’s gross income for the tax-
able year, 
the individual may elect to increase the nondeduct-
ible limit under paragraph (2) for the taxable year 
by an amount equal to the lesser of such excess or 
the amount so excluded.’’. 
(2) EFFECTIVE DATE.—The amendments made 
by this section shall apply to contributions after the 
date of the enactment of this Act. 
(b) 
DEFINED
CONTRIBUTION
PLANS.—Section 
415(c) of such Code is amended by adding at the end the 
following new paragraph: 
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‘‘(8) SPECIAL RULE FOR DIFFICULTY OF CARE 
PAYMENTS EXCLUDED FROM GROSS INCOME.— 
‘‘(A) IN GENERAL.—For purposes of para-
graph (1)(B), in the case of an individual who 
for a taxable year excludes from gross income 
under section 131 a qualified foster care pay-
ment which is a difficulty of care payment, the 
participant’s compensation, or earned income, 
as the case may be, shall be increased by the 
amount so excluded. 
‘‘(B) CONTRIBUTIONS ALLOCABLE TO DIF-
FICULTY
OF
CARE
PAYMENTS
TREATED
AS 
AFTER-TAX.—Any contribution by the partici-
pant which is allocable to an amount so ex-
cluded— 
‘‘(i) shall be treated for purposes of 
this title as investment in the contract, and 
‘‘(ii) shall not cause a plan (and any 
arrangement which is part of such plan) to 
be treated as failing to meet any require-
ments of this chapter solely by reason of 
allowing any such contributions.’’. 
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(c) EFFECTIVE DATE.—The amendment made by 
this subsection shall apply to plan years beginning after 
December 31, 2015. 
Æ 
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