[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 2130 Introduced in Senate (IS)]

103d CONGRESS
  2d Session
                                S. 2130

To amend the Internal Revenue Code of 1986 to adjust the death benefit 
   limits for certain policies purchased to cover payment of burial 
      expenses or in connection with prearranged funeral expenses.


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                   IN THE SENATE OF THE UNITED STATES

                 May 18 (legislative day, May 16), 1994

 Mr. Dole (for himself and Mr. Breaux) 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 adjust the death benefit 
   limits for certain policies purchased to cover payment of burial 
      expenses or in connection with prearranged funeral expenses.

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

SECTION 1. ADJUSTMENT OF DEATH BENEFIT LIMITS FOR CERTAIN POLICIES.

    (a) In General.--Subparagraph (C)(i) of section 7702(e)(2) of the 
Internal Revenue Code of 1986 (relating to limited increases in death 
benefit permitted) is amended by striking ``$5,000'' and inserting 
``$7,000'' and by striking ``$25,000'' and inserting ``$34,000''.
    (b) Inflation Adjustments.--Section 7702(e) of the Internal Revenue 
Code of 1986 (relating to computational rules) is amended by adding at 
the end the following new paragraph:
            ``(3) Inflation adjustment to death benefit limits for 
        years after 1995.--In the case of any taxable year beginning in 
        a calendar year after 1995, each dollar amount contained in 
        paragraph (2)(C)(i) shall be increased by an amount equal to--
                    ``(A) such dollar amount, multiplied by
                    ``(B) the cost-of-living adjustment determined 
                under section 1(f)(3) for the calendar year in which 
                the taxable year begins, by substituting `calendar year 
                1994' for `calendar year 1992' in subparagraph (B) 
                thereof.''
    (c) Conforming Amendment.--Section 72(e)(10)(B) of the Internal 
Revenue Code of 1986 is amended by striking ``$25,000'' and inserting 
``$34,000''.
    (d) Effective Date.--The amendments made by this section shall 
apply to contracts entered into on and after January 1, 1995.

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