[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 1961 Introduced in Senate (IS)]

<DOC>






117th CONGRESS
  1st Session
                                S. 1961

To amend the Internal Revenue Code of 1986 to increase IRA contribution 
      limits for individuals without an employer retirement plan.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              June 7, 2021

  Mr. Kennedy introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to increase IRA contribution 
      limits for individuals without an employer retirement plan.

    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 ``Increasing Retirement Amount Act of 
2021'' or the ``IRA Act of 2021''.

SEC. 2. INCREASE IN CONTRIBUTION LIMITS FOR INDIVIDUALS WITHOUT AN 
              EMPLOYER RETIREMENT PLAN.

    (a) In General.--Section 219 of the Internal Revenue Code of 1986 
is amended by adding at the end the following new subsection:
    ``(h) Special Rules for Individuals Without an Employer Plan.--For 
purposes of this section--
            ``(1) In general.--In the case of an applicable 
        individual--
                    ``(A) the deductible amount for purposes of 
                subsection (b)(1)(A) is $12,000, and
                    ``(B) the applicable amount for purposes of 
                subsection (b)(5)(B)(i) is $3,000.
            ``(2) Cost-of-living adjustment.--
                    ``(A) In general.--In the case of any taxable year 
                beginning in a calendar year after 2022, the $12,000 
                amount under paragraph (1)(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 2021' 
                        for `calendar year 2016' in subparagraph 
                        (A)(ii) thereof.
                    ``(B) Rounding rules.--If any amount after 
                adjustment under subparagraph (A) is not a multiple of 
                $500, such amount shall be rounded to the next lower 
                multiple of $500.
            ``(3) Applicable individual.--For purposes of paragraph 
        (1), the term `applicable individual' with respect to any 
        taxable year means any individual whose employer does not 
        maintain a plan described in any clause of subsection (g)(5)(A) 
        for such taxable year.''.
    (b) Coordination With Kay Bailey Hutchinson Spousal IRA.--
Subparagraph (A) of section 219(c)(1) of the Internal Revenue Code of 
1986 is amended by striking ``(b)(1)(A)'' and inserting ``(b)(1)(A) 
(determined without regard to subsection (h))''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2021.
                                 <all>