Bill

Bill > HR1932


US HR1932

US HR1932
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.


summary

Introduced
03/27/2019
In Committee
03/27/2019
Crossed Over
Passed
Dead
12/31/2020

Introduced Session

116th Congress

Bill Summary

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. This bill requires difficulty of care payments that are excluded from gross income to be treated as compensation for the purpose of determining limitations on contributions to tax-exempt retirement accounts. Difficulty of care payments are received by foster care providers as compensation for providing additional care for a foster individual. The care must be (1) required by reason of a physical, mental, or emotional handicap of the individual; and (2) provided in the home of the foster care provider.

AI Summary

This bill amends the Internal Revenue Code of 1986 to treat "difficulty of care" payments excluded from an individual's gross income as compensation for the purpose of determining limitations on contributions to tax-exempt retirement accounts, such as individual retirement accounts (IRAs) and defined contribution plans. Difficulty of care payments are received by foster care providers as compensation for providing additional care for a foster individual with a physical, mental, or emotional handicap. This allows foster care providers to contribute more to their retirement accounts based on the difficulty of care payments they receive, which are excluded from their taxable income.

Committee Categories

Budget and Finance

Sponsors (8)

Last Action

Referred to the House Committee on Ways and Means. (on 03/27/2019)

bill text


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