Text: H.R.12 — 107th Congress (2001-2002)All Bill Information (Except Text)

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Introduced in House (01/03/2001)


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[Congressional Bills 107th Congress]
[From the U.S. Government Printing Office]
[H.R. 12 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                 H. R. 12

 To amend the Internal Revenue Code of 1986 to increase the limitation 
          on contributions to individual retirement accounts.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 3, 2001

  Mr. Gallegly (for himself, Mr. Foley, Mr. Herger, and Mr. Hayworth) 
 introduced the following bill; which was referred to the Committee on 
                             Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to increase the limitation 
          on contributions to individual retirement accounts.

    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 ``IRA Fairness Act of 2001''.

SEC. 2. MODIFICATION OF IRA CONTRIBUTION LIMITS.

    (a) Increase in Contribution Limit.--
            (1) In general.--Paragraph (1)(A) of section 219(b) of the 
        Internal Revenue Code of 1986 (relating to maximum amount of 
        deduction) is amended by striking ``$2,000'' and inserting 
        ``the deductible amount''.
            (2) Deductible amount.--Section 219(b) of such Code is 
        amended by adding at the end the following new paragraph:
            ``(5) Deductible amount.--For purposes of paragraph 
        (1)(A)--
                    ``(A) In general.--The deductible amount shall be 
                determined in accordance with the following table:


                ``For taxable years
                                                         The deductible
                  beginning in:
                                                           amount is:  
                    2002...................................     $3,000 
                    2003...................................     $4,000 
                    2004 and thereafter....................     $5,000.
                    ``(B) Catch-up contributions for individuals 50 or 
                older.--In the case of an individual who has attained 
                the age of 50 before the close of the taxable year, the 
                deductible amount for such taxable year shall be an 
                amount equal to 125 percent of such amount determined 
                without regard to this subparagraph.
                    ``(C) Cost-of-living adjustment.--In the case of 
                any taxable year beginning in a calendar year after 
                2004, the $5,000 amount under 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 2003' 
                        for `calendar year 1992' in subparagraph (B) 
                        thereof.
                    ``(D) Rounding rules.--If the deductible amount 
                determined under subparagraph (B), and if any amount 
                after adjustment under subparagraph (C), is not a 
                multiple of $500, such amount shall be rounded to the 
                nearest multiple of $500.''.
    (b) Conforming Amendments.--
            (1) Section 408(a)(1) of such Code is amended by striking 
        ``in excess of $2,000 on behalf of any individual'' and 
        inserting ``on behalf of any individual in excess of the amount 
        in effect for such taxable year under section 219(b)(1)(A)''.
            (2) Section 408(b)(2)(B) of such Code is amended by 
        striking ``$2,000'' and inserting ``the dollar amount in effect 
        under section 219(b)(1)(A)''.
            (3) Section 408(b) of such Code is amended by striking 
        ``$2,000'' in the matter following paragraph (4) and inserting 
        ``the dollar amount in effect under section 219(b)(1)(A)''.
            (4) Section 408(j) of such Code is amended by striking 
        ``$2,000''.
            (5) Section 408(p)(8) of such Code is amended by striking 
        ``$2,000'' and inserting ``the dollar amount in effect under 
        section 219(b)(1)(A)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2001.
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