[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1028 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 1028

    To amend the Internal Revenue Code of 1986 to provide a partial 
exclusion from gross income of certain retirement benefits received by 
                  taxpayers who have attained age 65.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 11, 1997

  Mr. Saxton introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
    To amend the Internal Revenue Code of 1986 to provide a partial 
exclusion from gross income of certain retirement benefits received by 
                  taxpayers who have attained age 65.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Equity in Pensions Act of 1997''.

SEC. 2. PARTIAL EXCLUSION OF CERTAIN RETIREMENT BENEFITS.

    (a) In General.--Part III of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 (relating to items specifically excluded 
from gross income) is amended by redesignating section 138 as section 
139 and by inserting after section 137 the following new section:

``SEC. 138. PARTIAL EXCLUSION OF CERTAIN RETIREMENT BENEFITS.

    ``(a) In General.--In the case of an individual who has attained 
age 65 before the close of the taxable year, gross income shall not 
include amounts received during the taxable year as a pension, annuity, 
or disability benefit which, but for this section, is includible in 
gross income.
    ``(b) Maximum Exclusion.--The aggregate amount excluded from gross 
income by the taxpayer under subsection (a) for the taxable year shall 
not exceed $10,000, reduced (but not below zero) by the social security 
benefits (within the meaning of section 86(d)) received by the taxpayer 
during such year which are excluded from gross income.
    ``(c) Treatment of Returns of Married Persons.--In the case of a 
husband and wife--
            ``(1) each of whom has attained age 65 before the close of 
        the taxable year, and
            ``(2) who do not file a joint return,
the aggregate amount excluded from gross income by the taxpayer under 
subsection (a) for the taxable year shall not exceed $5,000, reduced 
(but not below zero) by the social security benefits (within the 
meaning of section 86(d)) received by the taxpayer during such year 
which are excluded from gross income, unless the husband and wife elect 
to allocate the $10,000 amount between them in a manner different from 
that made by the preceding sentence.''
    (b) Clerical Amendment.--The table of sections of part III of 
subchapter B of chapter 1 of such Code is amended by striking the last 
item and inserting the following new items:

                              ``Sec. 138. Partial exclusion of certain 
                                        retirement benefits.
                              ``Sec. 139. Cross references to other 
                                        Acts.''
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
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