[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.
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