Section 1 Short title
This Act may be cited as the “Family Savings for Kids and Seniors Act”.
Family Savings for Kids and Seniors Act
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.
Sec. 2 Increase in exclusion for employer-provided dependent care assistance including dependent care flexible spending arrangements
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 2021, 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.”
Conforming amendment— Section 129(a)(2)(A) of such Code is amended by striking “$2,500” and inserting “half such dollar amount”.
Effective date— The amendments made by this section shall apply to taxable years beginning after December 31, 2021.