[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 287 Introduced in Senate (IS)]







104th CONGRESS
  1st Session
                                 S. 287

To amend the Internal Revenue Code of 1986 to allow homemakers to get a 
                          full IRA deduction.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

             January 26 (legislative day, January 10), 1995

 Mrs. Hutchison (for herself, Ms. Mikulski, Mr. Abraham, Mr. Ashcroft, 
 Mr. Bennett, Mr. Bond, Mr. Brown, Mr. Burns, Mr. Coats, Mr. Cochran, 
Mr. Cohen, Mr. Coverdell, Mr. Craig, Mr. D'Amato, Mr. DeWine, Mr. Dole, 
  Mr. Domenici, Mr. Faircloth, Mr. Frist, Mr. Gorton, Mr. Gramm, Mr. 
Grams, Mr. Grassley, Mr. Gregg, Mr. Hatch, Mr. Hatfield, Mr. Helms, Mr. 
  Inhofe, Mrs. Kassebaum, Mr. Kempthorne, Mr. Kyl, Mr. Jeffords, Mr. 
Lott, Mr. Mack, Mr. McCain, Mr. McConnell, Mr. Murkowski, Mr. Nickles, 
  Mr. Pressler, Mr. Roth, Mr. Santorum, Mr. Shelby, Mr. Simpson, Mr. 
Smith, Ms. Snowe, Mr. Stevens, Mr. Thomas, Mr. Thompson, Mr. Thurmond, 
  Mr. Warner, Mr. Breaux, Mrs. Feinstein, Mr. Johnston, Mr. Moynihan, 
Mrs. Murray, Mr. Reid, Ms. Moseley-Braun, and Mr. Simon) 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 allow homemakers to get a 
                          full IRA deduction.

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

SECTION 1. HOMEMAKERS ELIGIBLE FOR FULL IRA DEDUCTION.

    (a) Spousal IRA Computed on Basis of Compensation of Both 
Spouses.--Subsection (c) of section 219 of the Internal Revenue Code of 
1986 (relating to special rules for certain married individuals) is 
amended to read as follows:
    ``(c) Special Rules for Certain Married Individuals.--
            ``(1) In general.--In the case of an individual to whom 
        this paragraph applies for the taxable year, the limitation of 
        paragraph (1) of subsection (b) shall be equal to the lesser 
        of--
                    ``(A) $2,000, or
                    ``(B) the sum of--
                            ``(i) the compensation includible in such 
                        individual's gross income for the taxable year, 
                        plus
                            ``(ii) the compensation includible in the 
                        gross income of such individual's spouse for 
                        the taxable year reduced by the amount 
                        allowable as a deduction under subsection (a) 
                        to such spouse for such taxable year.
            ``(2) Individuals to whom paragraph (1) applies.--Paragraph 
        (1) shall apply to any individual if--
                    ``(A) such individual files a joint return for the 
                taxable year, and
                    ``(B) the amount of compensation (if any) 
                includible in such individual's gross income for the 
                taxable year is less than the compensation includible 
                in the gross income of such individual's spouse for the 
                taxable year.''
    (b) Conforming Amendments.--
            (1) Paragraph (2) of section 219(f) of the Internal Revenue 
        Code of 1986 (relating to other definitions and special rules) 
        is amended by striking ``subsections (b) and (c)'' and 
        inserting ``subsection (b)''.
            (2) Section 408(d)(5) of such Code is amended by striking 
        ``$2,250'' and inserting ``$2,000''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1994.
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