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H.R. 1994

MAY 16, 2019

H.R. 1994

DATED MAY 16, 2019
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Citations: H.R. 1994

AMENDMENT TO H.R. 1994, AS REPORTED

OFFERED BY MR. NEAL OF MASSACHUSETTS

In section 107, insert after subsection (a) the following:

(b) COORDINATION WITH QUALIFIED CHARITABLE DISTRIBUTIONS. — Add at the end of section 408(d)(8)(A) of such Code the following: "The amount of distributions not includible in gross income by reason of the preceding sentence for a taxable year (determined without regard to this sentence) shall be reduced (but not below zero) by an amount equal to the excess of —

‘‘(i) the aggregate amount of deductions allowed to the taxpayer under section 219 for all taxable years ending on or after the date the taxpayer attains age 701⁄2, over

‘‘(ii) the aggregate amount of reductions under this sentence for all taxable years preceding the current taxable year.’’.

In section 401(k)(15)(B)(iii) of the Internal Revenue Code of 1986, as proposed to be added by section 112, add at the end the following: ", and section 411(a)(6) shall be applied by substituting 'at least 500 hours of service' for 'more than 500 hours of service' in subparagraph (A) thereof".

In section 401(k)(15)(B)(iv) of the Internal Revenue Code of 1986, as proposed to be added by section 112, insert "(other than clause (iii))" after "This subparagraph".

In section 114(c), strike paragraph (2).

In section 303(m)(6) of the Employee Retirement Income Security Act of 1974, as proposed to be added by section 115, strike "a community newspaper plan which elects the application of" and insert "a plan for which an election is made to apply".

In section 202(b), insert before the period at the end the following: "and shall require such information as will enable a participant in a plan to identify any aggregated return or report filed with respect to the plan".

In section 302, strike subsections (b) and (d).

Amend section 401(a)(9)(H)(iv) of the Internal Revenue Code of 1986, as proposed to be added by section 401, to read as follows:

"(iv) APPLICATION TO CERTAIN ELIGIBLE RETIREMENT PLANS. — For purposes of applying the provisions of this subparagraph in determining amounts required to be distributed pursuant to this paragraph, all eligible retirement plans (as defined in section 402(c)(8)(B), other than a defined benefit plan described in clause (iv) or (v) thereof or a qualified trust which is a part of a defined benefit plan) shall be treated as a defined contribution plan.".

In section 403(a)(1), strike "$105" and insert "$250".

In section 403(a)(2), strike "$50,000" and insert "$150,000".

In section 403(b)(1), strike "$2" and insert "$10".

In section 403(b)(2), strike "$10,000" and insert "$50,000".

In section 403(b)(3), strike "$5,000" and insert "$10,000".

Add at the end the following:

TITLE V — TAX RELIEF FOR CERTAIN CHILDREN

SEC. 501. CERTAIN MILITARY SURVIVOR BENEFITS, CERTAIN PAYMENTS MADE BY INDIAN TRIBAL GOVERNMENTS, CERTAIN SCHOLARSHIPS OR FELLOWSHIP GRANTS, AND ALASKA PERMANENT FUND DIVIDENDS TREATED AS EARNED INCOME FOR KIDDIE TAX.

(a) IN GENERAL. — Section 1(g)(4)(C) of the Internal Revenue Code of 1986 is amended to read as follows:

"(C) TREATMENT OF CERTAIN AMOUNTS AS EARNED INCOME. — For purposes of this subsection, each of following amounts shall be treated as earned income of the child referred to in paragraph (1) to the extent included in the gross income of such child:

"(i) DISTRIBUTIONS FROM QUALIFIED DISABILITY TRUSTS. — Any amount included in the gross income of such child under section 652 or 662 by reason of being a beneficiary of a qualified disability trust (as defined in section 642(b)(2)(C)(ii)).

"(ii) CERTAIN MILITARY SURVIVOR BENEFITS. — Any benefit under laws administered by the Secretary of Defense or the Secretary of Veterans Affairs which is received by such child by reason of the child being the survivor of a deceased member of the Armed Forces or of a deceased veteran.

"(iii) CERTAIN INDIAN TRIBAL PAYMENTS. — Any payment made by an Indian tribal government (as defined in section 139E(c)(1)), or from a trust of which the Indian tribal government is treated as the owner under subpart E of part I of subchapter J, to such child if —

"(I) such child is an enrolled member of the tribe with respect to such Indian tribal government, and

"(II) such payment is received by such child by reason of such enrollment.

"(iv) CERTAIN SCHOLARSHIPS OR FELLOWSHIP GRANTS. — Any scholarship or fellowship grant which is received by such child if —

"(I) such child is a candidate for a degree at an educational organization described in section 170(b)(1)(A)(ii), and

"(II) such scholarship or grant supports such candidacy.

"(v) ALASKA PERMANENT FUND DIVIDENDS. — Any Alaska Permanent Fund dividend.".

(b) APPLICATION TO ALTERNATIVE MINIMUM TAX. — Section 59(j)(1)(A) of such Code is amended by inserting "and including amounts treated as earned income under section 1(g)(4)(C)" after "section 911(d)(2)".

(c) EFFECTIVE DATE. — The amendment made by this section shall apply to taxable years beginning after December 31, 2017.

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