Amends the Internal Revenue Code of 1986 to waive the 10-percent additional tax on early distributions from qualified retirement plans for family caregiving expenses.
Allows individuals to withdraw up to $10,000 from retirement plans for qualified family caregiving distributions.
Defines “qualified family caregiving distribution” as amounts paid for family caregiving expenses during the taxable year.
Specifies that family caregiving expenses include goods, services, and supports that assist a qualified care recipient with daily living activities.
Lists eligible expenses such as human assistance, assistive technologies, environmental modifications, health maintenance tasks, and transportation.
Includes provisions for eligible caregivers to claim expenses for respite care, counseling, lost wages, travel costs, and caregiving technologies.
Requires documentation to substantiate expenses claimed under this provision.
Defines “qualified care recipient” as individuals with long-term care needs certified by a licensed health care practitioner.
Establishes criteria for long-term care needs, including inability to perform daily living activities or requiring substantial supervision.
Allows for repayment of distributed amounts under similar rules to existing regulations.
The amendment applies to distributions made after the enactment of the legislation.
