,i  #aafth ,,congress  #ast ,session    
,h4 ,r4 #aicb  ,,in ,,the ,,house ,,of  
,,representatives  ,march #bg1 #bjai,ms4
 ,schrier 7for herself1 ,ms4 ,del,bene1 
,mr4 ,panetta1 ,mr4 ,thompson of        
,california1 ,ms4 ,snchez1 ,ms4 ,judy   
,chu of ,california1 and ,mr4 ,gomez7   
introduced the following bill2 which was
 referred to the ,committee on ,ways and
 ,means  ,a ,,bill  ,to amend the       
,internal ,revenue ,code of #aihf to    
treat as compensation for purposes of   
retirement contribution limitations any 
difficulty of care payments excluded    
from gross income4  #a4 ,treating       
excluded difficulty of care payments as 
compensation for determining retirement 
contribution limitations  7a7           
,individual retirement accounts  7#a7   
,in general ,section #djh7o7 of the     
,internal ,revenue ,code of #aihf is    
amended by adding at the end the        
following new paragraph3  7#e7 ,special 
rule for difficulty of care payments    
excluded from gross income ,in the case 

of an individual who for a taxable year 
excludes from gross income under section
 #aca a qualified foster care payment   
which is a difficulty of care payment1  
if--  7,a7 the deductible amount in     
effect for the taxable year under       
subsection 7b71 exceeds  7,b7 the amount
 of compensation includible in the      
individual's gross income for the       
taxable year1  the individual may elect 
to increase the nondeductible limit     
under paragraph 7#b7 for the taxable    
year by an amount equal to the lesser of
 such excess or the amount so excluded4 
4  7#b7 ,effective date ,the amendments 
made by this section shall apply to     
contributions after the date of the     
enactment of this ,act4  7b7 ,defined   
contribution plans ,section #dae7;c7 of 
such ,code is amended by adding at the  
end the following new paragraph3  7#h7  
,special rule for difficulty of care    
payments excluded from gross income     
7,a7 ,in general ,for purposes of       
paragraph 7#a77;,b71 in the case of an  

individual who for a taxable year       
excludes from gross income under section
 #aca a qualified foster care payment   
which is a difficulty of care payment1  
the participant's compensation1 or      
earned income1 as the case may be1 shall
 be increased by the amount so excluded4
  7,b7 ,contributions allocable to      
difficulty of care payments treated as  
after-tax ,any contribution by the      
participant which is allocable to an    
amount so excluded-- 7i7 shall be       
treated for purposes of this title as   
investment in the contract1 and  7ii7   
shall not cause a plan 7and any         
arrangement which is part of such plan7 
to be treated as failing to meet any    
requirements of this chapter solely by  
reason of allowing any such             
contributions4  4  7c7 ,effective date  
,the amendment made by this subsection  
shall apply to plan years beginning     
after ,december #ca1 #bjae4