[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 362 Introduced in Senate (IS)]

103d CONGRESS
  1st Session
                                 S. 362

To amend the Internal Revenue Code of 1986 to restore the IRA deduction 
                        and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

             February 16 (legislative day, January 5), 1993

  Mr. Heflin 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 restore the IRA deduction 
                        and for other purposes.

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

SECTION 1. RESTORATION OF THE IRA DEDUCTION.

    (a) In General.--Section 219 of the Internal Revenue Code of 1986 
(relating to deduction for retirement savings) is amended by striking 
subsection (g) and by redesignating subsection (h) as subsection (g).
    (b) Technical and Conforming Amendments.--
            (1) Subsection (f) of section 219 of such Code is amended 
        by striking paragraph (7).
            (2) Paragraph (5) of section 408(d) of such Code is amended 
        by striking the last sentence.
            (3) Section 408(o) of such Code is amended by adding at the 
        end thereof the following new paragraph:
            ``(5) Termination.--This subsection shall not apply to any 
        designated nondeductible contribution for any taxable year 
        beginning after December 31, 1993.''.
            (4) Subsection (b) of section 4973 of such Code is amended 
        by striking the last sentence.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1993.

SEC. 2. INFLATION ADJUSTMENT FOR DEDUCTIBLE AMOUNT.

    (a) In General.--Section 219 of the Internal Revenue Code of 1986, 
as amended by section 1, is amended by redesignating subsection (g) as 
subsection (h) and by inserting after subsection (f) the following new 
subsection:
    ``(g) Cost-of-Living Adjustments.--
            ``(1) In general.--If the cost-of-living amount for any 
        calendar year is equal to or greater than $500, then each 
        applicable dollar amount (as previously adjusted under this 
        subsection) for any taxable year beginning in any subsequent 
        calendar year shall be increased by $500.
            ``(2) Cost-of-living amount.--The cost-of-living amount for 
        any calendar year is the excess (if any) of--
                    ``(A) $2,000, increased by the cost-of-living 
                adjustment for such calendar year, over
                    ``(B) the applicable dollar amount in effect under 
                subsection (b)(1)(A) for taxable years beginning in 
                such calendar year.
            ``(3) Cost-of-living adjustment.--For purposes of this 
        subsection--
                    ``(A) In general.--The cost-of-living adjustment 
                for any calendar year is the percentage (if any) by 
                which--
                            ``(i) the CPI for such calendar year, 
                        exceeds
                            ``(ii) the CPI for 1992.
                    ``(B) CPI for any calendar year.--The CPI for any 
                calendar year shall be determined in the same manner as 
                under section 1(f)(4).
            ``(4) Applicable dollar amount.--For purposes of this 
        subsection, the term `applicable dollar amount' means the 
        dollar amount in effect under any of the following provisions:
                    ``(A) Subsection (b)(1)(A).
                    ``(B) Subsection (c)(2)(A)(i).
                    ``(C) The last sentence of subsection (c)(2).''.
    (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(j) of such Code is amended by striking 
        ``$2,000''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1993.

SEC. 3. COORDINATION OF IRA DEDUCTION LIMIT WITH ELECTIVE DEFERRAL 
              LIMIT.

    (a) In General.--Section 219(b) of the Internal Revenue Code of 
1986 (relating to maximum amount of deduction) is amended by adding at 
the end thereof the following new paragraph:
            ``(4) Coordination with elective deferral limit.--The 
        amount determined under paragraph (1) or subsection (c)(2) with 
        respect to any individual for any taxable year shall not exceed 
        the excess (if any) of--
                    ``(A) the maximum amount of elective deferrals of 
                the individual which are excludable from gross income 
                for the taxable year under section 402(g)(1), over
                    ``(B) the amount so excluded.''.
    (b) Conforming Amendment.--Section 219(c) of such Code is amended 
by adding at the end thereof the following new paragraph:
            ``(3) Cross reference.--

                                ``For reduction in paragraph (2) 
amount, see subsection (b)(4).''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1993.

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