Text: H.R.4019 — 109th Congress (2005-2006)All Information (Except Text)

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Public Law No: 109-264 (08/03/2006)

 
[109th Congress Public Law 264]
[From the U.S. Government Printing Office]


[DOCID: f:publ264.109]

[[Page 120 STAT. 667]]

Public Law 109-264
109th Congress

                                 An Act


 
 To amend title 4 of the United States Code to clarify the treatment of 
  self-employment for purposes of the limitation on State taxation of 
        retirement income. <<NOTE: Aug. 3, 2006 -  [H.R. 4019]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. CLARIFICATION OF TREATMENT OF SELF-EMPLOYMENT FOR PURPOSES OF 
            THE LIMITATION ON STATE TAXATION OF RETIREMENT INCOME.

    (a) In General.--Section 114(b)(1)(I) of title 4, United States 
Code, is amended--
            (1) by inserting ``(or any plan, program, or arrangement 
        that is in writing, that provides for retirement payments in 
        recognition of prior service to be made to a retired partner, 
        and that is in effect immediately before retirement begins)'' 
        after ``section 3121(v)(2)(C) of such Code'',
            (2) by inserting ``which may include income described in 
        subparagraphs (A) through (H)'' after ``(not less frequently 
        than annually'',
            (3) by adding at the end the following:
                ``The fact that payments may be adjusted from time to 
                time pursuant to such plan, program, or arrangement to 
                limit total disbursements under a predetermined formula, 
                or to provide cost of living or similar adjustments, 
                will not cause the periodic payments provided under such 
                plan, program, or arrangement to fail the `substantially 
                equal periodic payments' test.'', and
            (4) by adding at the end the following:
            ``(4) For purposes of this section, the term `retired 
        partner' is an individual who is described as a partner in 
        section 7701(a)(2) of the Internal Revenue Code of 1986 and who 
        is retired under such individual's partnership agreement.''.

    (b) Application.--The <<NOTE: 4 USC 114 note.>> amendments made by 
this section apply to amounts received after December 31, 1995.

    Approved August 3, 2006.

LEGISLATIVE HISTORY--H.R. 4019:
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CONGRESSIONAL RECORD, Vol. 152 (2006):
HOUSE REPORTS: No. 109-542 (Comm. on the Judiciary).
            July 17, considered and passed House.
            July 24, considered and passed Senate.

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