H.R. 1985

Family Savings for Kids and Seniors Act

Latest
Raw Text PDF XML

I

116th CONGRESS

1st Session

H. R. 1985

IN THE HOUSE OF REPRESENTATIVES

March 28, 2019

Ms. Porter (for herself and Ms. Herrera Beutler) 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 increase the exclusion for employer-provided dependent care assistance including the limitation on dependent care flexible spending arrangements.

1.

Short title

This Act may be cited as the Family Savings for Kids and Seniors Act.

2.

Increase in exclusion for employer-provided dependent care assistance including dependent care flexible spending arrangements

(a)

Increase To take into account inflation since 1986

Section 129(a)(2) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph:

(D)

Inflation adjustment

In the case of any taxable year beginning in a calendar year after 2019, the $5,000 amount in subparagraph (A) shall be increased by an amount equal to—

(i)

such dollar amount, multiplied by

(ii)

the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting calendar year 1986 for calendar year 2016 in subparagraph (A)(ii) thereof.

If any increase determined under this paragraph is not a multiple of $100, such increase shall be rounded to the next lowest multiple of $100.

.

(b)

Conforming amendment

Section 129(a)(2)(A) of such Code is amended by striking $2,500 and inserting half such dollar amount.

(c)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2019.