[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3102 Introduced in House (IH)]







105th CONGRESS
  2d Session
                                H. R. 3102

  To amend the Internal Revenue Code of 1986 to provide an inflation 
   adjustment for the maximum amount which may be contributed to an 
                      individual retirement plan.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 27, 1998

  Mr. Neal of Massachusetts 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 an inflation 
   adjustment for the maximum amount which may be contributed to an 
                      individual retirement plan.

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

SECTION 1. INFLATION ADJUSTMENT FOR DEDUCTIBLE AMOUNT.

    (a) In General.--Section 219 of the Internal Revenue Code of 1986 
(relating to retirement savings) is amended by redesignating subsection 
(h) as subsection (i) and by inserting after subsection (g) the 
following new subsection:
    ``(h) Cost-of-Living Adjustments.--In the case of any taxable year 
beginning in a calendar year after 1998, the $2,000 amount under 
subsection (b)(1)(A) shall be increased by an amount equal to--
            ``(1) $2,000, multiplied by
            ``(2) 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 1997' for `calendar year 
        1992' in subparagraph (B) thereof.
If any increase determined under the preceding sentence is not a 
multiple of $500, such increase shall be rounded to the next lowest 
multiple of $500.''
    (b) No Adjustment in Limit on Contributions to Roth IRAs.--
Subparagraph (A) of section 408A(c)(2) of such Code is amended by 
striking ``or (g)'' and inserting ``, (g), or (h)''.
    (c) 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 $2,000 
        (or, in the case of a trust which is not a Roth IRA, the dollar 
        amount in effect under section 219(b)(1)(A) for the taxable 
        year)''.
            (2) Section 408(b) of such Code is amended by inserting 
        ``(or, in the case of a contract which is not a Roth IRA, the 
        dollar amount in effect under section 219(b)(1)(A) for the 
        taxable year)'' after ``$2,000'' each place it appears.
            (3) Section 408(j) of such Code is amended by striking 
        ``the $2,000 amounts'' and inserting ``the dollar 
        limitations''.
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