H.R. 1985 - Family Savings for Kids and Seniors Act

116TH CONGRESS
1ST SESSION

H.R. 1985

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.

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.

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 "Family Savings for Kids and Seniors Act".

SEC. 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.