[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3225 Introduced in House (IH)]







105th CONGRESS
  2d Session
                                H. R. 3225

 To amend the Internal Revenue Code of 1986 to increase the limits on 
  the amount of nondeductible contributions to individual retirement 
                                 plans.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 12, 1998

 Mr. Gallegly 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 increase the limits on 
  the amount of nondeductible contributions to individual retirement 
                                 plans.

    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 ``Small Savers Retirement Enhancement 
Act of 1998''.

SEC. 2. INCREASE IN CONTRIBUTION LIMITS FOR INDIVIDUAL RETIREMENT 
              ACCOUNTS.

    (a) In General.--Section 408 of the Internal Revenue Code of 1986 
(relating to individual retirement accounts) is amended--
            (1) in subsection (a)(1) by striking ``$2,000'' and 
        inserting ``$5,000'',
            (2) in subsection (b) by striking ``$2,000'' both places it 
        appears and inserting ``$5,000'', and
            (3) in subsection (j) by striking ``$2,000'' and inserting 
        ``$5,000''.
    (b) Designated Nondeductible Contributions.--Clause (i) of section 
408(o)(2)(B) of such Code (relating to limitation on nondeductible 
contributions) is amended by adding at the end the following flush 
sentence: ``For purposes of the preceding sentence, section 
219(b)(1)(A) shall be applied by substituting `$5,000' for `$2,000'.''
    (c) Technical and Conforming Amendments.--
            (1) Section 219 of such Code (relating to retirement 
        savings) is amended--
                    (A) in subsection (c)(1) by adding at the end the 
                following flush sentence: ``For purposes of the 
                preceding sentence, subsection (b)(1)(A) shall be 
                applied by substituting `$5,000' for `$2,000'.'', and
                    (B) in subsection (g)(1) by adding at the end the 
                following new sentence: ``For purposes of the preceding 
                sentence, subsections (b)(1)(A) and (c)(1)(A) shall be 
                applied by substituting `$5,000' for `$2,000'.''
            (2) Section 408A(c)(2) of such Code (relating to 
        contribution limit for Roth IRA) is amended by adding at the 
        end the following flush sentence: ``For purposes of the 
        preceding sentence, section 219(b)(1)(A) shall be applied by 
        substituting `$5,000' for `$2,000'.''
            (3) Section 4973(b) of such Code (relating to tax on excess 
        contributions) is amended by adding at the end the following 
        flush sentence: ``For purposes of paragraph (1)(B), section 
        219(b)(1)(A) shall be applied by substituting `$5,000' for 
        `$2,000'.''
    (d) 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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