[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 807 Introduced in Senate (IS)]

  1st Session
                                 S. 807

To amend the Internal Revenue Code of 1986 to provide that individuals 
 who have attained age 59\1/2\ may contribute to individual retirement 
             accounts without regard to their compensation.


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                   IN THE SENATE OF THE UNITED STATES

                 May 16 (legislative day, May 15), 1995

 Mr. Lieberman 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 provide that individuals 
 who have attained age 59\1/2\ may contribute to individual retirement 
             accounts without regard to their compensation.
    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. IRA CONTRIBUTIONS FOR INDIVIDUALS ATTAINING AGE 59\1/2\ 
              DETERMINED WITHOUT REGARD TO COMPENSATION.

    (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 the following new paragraph:
            ``(4) Special rule for individuals who have attained age 
        59\1/2\.--In the case of an individual who attains age 59\1/2\ 
        before the close of such individual's taxable year, paragraphs 
        (1)(B) and (3)(B) shall be applied for such year and each 
        taxable year thereafter, by substituting `the income' for `the 
        compensation' or `the compensation (as defined in section 
        415(c)(3))', respectively.''
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after the date of the enactment of this Act.
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