Summary: H.R.2294 — 102nd Congress (1991-1992)All Information (Except Text)

There is one summary for H.R.2294. Bill summaries are authored by CRS.

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Introduced in House (05/09/1991)

PRIME Retirement Account Act of 1991 - Amends the Internal Revenue Code to establish a simplified retirement plan for small business to be known as PRIME accounts (private retirement incentives matched by employers). Allows an income tax deduction to employees who make pre-tax contributions of up to $3,000 annually to a PRIME account and requires an employer to match such contributions up to three percent of the employee's compensation. Declares that such accounts are not to be treated as pension plans. Excludes such accounts from limitation on the maximum amount allowed for retirement savings deductions. Specifies the pension plan rules that are applicable to PRIME accounts. Establishes a 25-percent penalty on withdrawals made from such accounts during the first three years.

Sets forth penalties to be imposed upon: (1) account trustees for failure to provide requirement information to employers; and (2) employers for failure to make required notifications to employees.