H.R.12 - IRA Fairness Act of 2001107th Congress (2001-2002)
|Sponsor:||Rep. Gallegly, Elton [R-CA-23] (Introduced 01/03/2001)|
|Committees:||House - Ways and Means|
|Latest Action:||House - 01/03/2001 Referred to the House Committee on Ways and Means. (All Actions)|
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Text: H.R.12 — 107th Congress (2001-2002)All Information (Except Text)
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Introduced in House (01/03/2001)
[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. <all>