Introduced in House Passed House Introduced in Senate Passed Senate To President Became Law
02/10/2020          

Investing in Your Family's Future Act

Date Version PDF TXT
02/10/2020 Introduced in House Open

            I 

116TH CONGRESS 
2D SESSION H. R. 5837 

To amend the Internal Revenue Code of 1986 to permit treatment of child 
care payments as elective deferrals for purposes of employer matching 
contributions, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 10, 2020 
Mrs. WAGNER (for herself and Mr. JEFFRIES) 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 permit 

treatment of child care payments as elective deferrals 
for purposes of employer matching contributions, and 
for other purposes. 

Be it enacted by the Senate and House of Representa-1

tives of the United States of America in Congress assembled, 2

SECTION 1. SHORT TITLE. 3

This Act may be cited as the ‘‘Investing in Your 4

Family’s Future Act’’. 5

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2 

•HR 5837 IH

SEC. 2. TREATMENT OF CHILD CARE PAYMENTS AS ELEC-1

TIVE DEFERRALS FOR PURPOSES OF MATCH-2

ING CONTRIBUTIONS. 3

(a) IN GENERAL.—Subparagraph (A) of section 4

401(m)(4) of the Internal Revenue Code of 1986 is 5

amended by striking ‘‘and’’ at the end of clause (i), by 6

striking the period at the end of clause (ii) and inserting 7

‘‘, and’’, and by adding at the end the following new 8

clause: 9

‘‘(iii) subject to the requirements of 10

paragraph (13), any employer contribution 11

made to a defined contribution plan on be-12

half of an employee on account of a quali-13

fied child care payment.’’. 14

(b) QUALIFIED CHILD CARE PAYMENT.—Paragraph 15

(4) of section 401(m) of the Internal Revenue Code of 16

1986 is amended by adding at the end the following new 17

subparagraph: 18

‘‘(D) QUALIFIED CHILD CARE PAYMENT.— 19

The term ‘qualified child care payment’ means 20

any payment by an employee of employment-re-21

lated expenses (within the meaning of section 22

21(b)(2)), but only to the extent such payments 23

in the aggregate for the year do not exceed an 24

amount equal to 25

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3 

•HR 5837 IH

‘‘(i) the limitation applicable under 1

section 402(g) for the year (or, if lesser, 2

the employee’s compensation (as defined in 3

section 415(c)(3)) for the year), reduced 4

by 5

‘‘(ii) the elective deferrals made by the 6

employee for such year.’’. 7

(c) MATCHING CONTRIBUTIONS FOR QUALIFIED 8

CHILD CARE PAYMENTS.—Subsection (m) of section 401 9

of the Internal Revenue Code of 1986 is amended by re-10

designating paragraph (13) as paragraph (14), and by in-11

serting after paragraph (12) the following new paragraph: 12

‘‘(13) MATCHING CONTRIBUTIONS FOR QUALI-13

FIED CHILD CARE PAYMENTS.— 14

‘‘(A) IN GENERAL.—For purposes of para-15

graph (4)(A)(iii), an employer contribution 16

made to a defined contribution plan on account 17

of a qualified child care payment shall be treat-18

ed as a matching contribution for purposes of 19

this title if— 20

‘‘(i) the plan provides matching con-21

tributions on account of elective deferrals 22

at the same rate as contributions on ac-23

count of qualified child care payments, 24

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4 

•HR 5837 IH

‘‘(ii) the plan provides matching con-1

tributions on account of qualified child 2

care payments only on behalf of employees 3

otherwise eligible to make elective defer-4

rals, and 5

‘‘(iii) under the plan, all employees el-6

igible to receive matching contributions on 7

account of elective deferrals are eligible to 8

receive matching contributions on account 9

of qualified child care payments. 10

‘‘(B) TREATMENT FOR PURPOSES OF NON-11

DISCRIMINATION RULES, ETC.— 12

‘‘(i) NONDISCRIMINATION RULES.— 13

For purposes of subparagraph (A)(iii), 14

subsection (a)(4), and section 410(b), 15

matching contributions described in para-16

graph (4)(A)(iii) shall not fail to be treated 17

as available to an employee solely because 18

such employee does not have employment- 19

related expenses (within the meaning of 20

section 21(b)(2)). 21

‘‘(ii) CHILD CARE PAYMENTS NOT 22

TREATED AS PLAN CONTRIBUTION.—Ex-23

cept as provided in clause (iii), a qualified 24

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5 

•HR 5837 IH

child care payment shall not be treated as 1

a contribution to a plan under this title. 2

‘‘(iii) MATCHING CONTRIBUTION 3

RULES.—Solely for purposes of meeting 4

the requirements of paragraph (11)(B) or 5

(12) of this subsection, or paragraph 6

(11)(B)(i)(II), (12)(B), or (13)(D) of sub-7

section (k), a plan may treat a qualified 8

child care payment as an elective deferral 9

or an elective contribution, whichever is 10

applicable.’’. 11

(d) SIMPLE RETIREMENT ACCOUNTS.—Paragraph 12

(2) of section 408(p) of the Internal Revenue Code of 13

1986 is amended by adding at the end the following new 14

subparagraph: 15

‘‘(F) MATCHING CONTRIBUTIONS FOR 16

QUALIFIED CHILD CARE PAYMENTS.— 17

‘‘(i) IN GENERAL.—Subject to the 18

rules of clause (iii), an arrangement shall 19

not fail to be treated as meeting the re-20

quirements of subparagraph (A)(iii) solely 21

because under the arrangement, solely for 22

purposes of such subparagraph, qualified 23

child care payments are treated as 24

amounts elected by the employee under 25

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6 

•HR 5837 IH

subparagraph (A)(i)(I) to the extent such 1

payments do not exceed— 2

‘‘(I) the applicable dollar amount 3

under subparagraph (E) (after appli-4

cation of section 414(v)) for the year 5

(or, if lesser, the employee’s com-6

pensation (as defined in section 7

415(c)(3)) for the year), reduced by 8

‘‘(II) any other amounts elected 9

by the employee under subparagraph 10

(A)(i)(I) for the year. 11

‘‘(ii) QUALIFIED CHILD CARE PAY-12

MENT.—For purposes of this subpara-13

graph, the term ‘qualified child care pay-14

ment’ means any payment by an employee 15

of employment-related expenses (within the 16

meaning of section 21(b)(2)). 17

‘‘(iii) APPLICABLE RULES.—Clause (i) 18

shall apply to an arrangement only if, 19

under the arrangement— 20

‘‘(I) matching contributions on 21

account of qualified child care pay-22

ments are provided only on behalf of 23

employees otherwise eligible to elect 24

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7 

•HR 5837 IH

contributions under subparagraph 1

(A)(i)(I), and 2

‘‘(II) all employees otherwise eli-3

gible to participate in the arrange-4

ment are eligible to receive matching 5

contributions on account of qualified 6

child care payments.’’. 7

(e) 403(b) PLANS.—Subparagraph (A) of section 8

403(b)(12) of the Internal Revenue Code of 1986 is 9

amended by adding at the end the following: ‘‘The fact 10

that the employer offers matching contributions on ac-11

count of qualified child care payments as described in sec-12

tion 401(m)(13) shall not be taken into account in deter-13

mining whether the arrangement satisfies the require-14

ments of clause (ii) (and any regulation thereunder).’’. 15

(f) 457(b) PLANS.—Subsection (b) of section 457 of 16

the Internal Revenue Code of 1986 is amended by adding 17

at the end the following: ‘‘A plan which is established and 18

maintained by an employer which is described in sub-19

section (e)(1)(A) shall not be treated as failing to meet 20

the requirements of this subsection solely because the 21

plan, or another plan maintained by the employer which 22

meets the requirements of section 401(a), provides for 23

matching contributions on account of qualified child care 24

payments as described in section 401(m)(13).’’. 25

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8 

•HR 5837 IH

(g) REGULATORY AUTHORITY.—The Secretary shall 1

prescribe regulations for purposes of implementing the 2

amendments made by this section, including regulations— 3

(1) permitting a plan to make matching con-4

tributions for qualified child care payments, as de-5

fined in sections 401(m)(4)(D) and 408(p)(2)(F) of 6

the Internal Revenue Code of 1986, as added by this 7

section, at a different frequency than matching con-8

tributions are otherwise made under the plan, pro-9

vided that the frequency is not less than annually; 10

(2) permitting employers to establish reasonable 11

procedures to claim matching contributions for such 12

qualified child care payments under the plan, includ-13

ing an annual deadline (not earlier than 3 months 14

after the close of each plan year) by which a claim 15

must be made; and 16

(3) promulgating model amendments which 17

plans may adopt to implement matching contribu-18

tions on such qualified child care payments for pur-19

poses of sections 401(m), 408(p), 403(b), and 20

457(b) of the Internal Revenue Code of 1986. 21

(h) EFFECTIVE DATE.—The amendments made by 22

this section shall apply to contributions made for years 23

beginning after December 31, 2020. 24

Æ 

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Picture Name From Date Type
Ann Wagner R-MO 02/10/2020 Sponsor
Hakeem Jeffries D-NY 02/10/2020 Cosponsor
Date Branch Action
02/10/2020 President Referred to the House Committee on Ways and Means.Action By: House of Representatives
02/10/2020 President Introduced in HouseAction By: House of Representatives
Summary
There is one summary for H.R.5837. View summaries Shown Here:Introduced in House (02/10/2020) Investing in Your Family's Future Act This bill allows certain employer-sponsored retirement plans to make matching contributions for child care payments as if the payments were salary reduction contributions to the retirement plan.
There is one summary for H.R.5837. View summaries Shown Here:Introduced in House (02/10/2020) Investing in Your Family's Future Act This bill allows certain employer-sponsored retirement plans to make matching contributions for child care payments as if the payments were salary reduction contributions to the retirement plan.
Shown Here:Introduced in House (02/10/2020) Investing in Your Family's Future Act This bill allows certain employer-sponsored retirement plans to make matching contributions for child care payments as if the payments were salary reduction contributions to the retirement plan.
Shown Here:Introduced in House (02/10/2020) Investing in Your Family's Future Act This bill allows certain employer-sponsored retirement plans to make matching contributions for child care payments as if the payments were salary reduction contributions to the retirement plan.
Congress - Bill Number Major Title
Branch Vote Date Yes No Not Voting
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Bill TEXT Points.
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House of Representatives
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States
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Future
116 HR 5837 IH: Investing in Your Family's Future Act U


End Bill TEXT Points.
Date Bill Major Title
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Subject Type