[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3979 Introduced in House (IH)]







105th CONGRESS
  2d Session
                                H. R. 3979

To amend the Internal Revenue Code of 1986 to allow certain individuals 
a credit against income tax for contributions to individual retirement 
                               accounts.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              June 3, 1998

 Mr. Pomeroy 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 allow certain individuals 
a credit against income tax for contributions to individual retirement 
                               accounts.

    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 ``Family Retirement Savings Act of 
1998''.

SEC. 2. CREDIT FOR CONTRIBUTIONS BY CERTAIN INDIVIDUALS TO INDIVIDUAL 
              RETIREMENT ACCOUNTS.

    (a) In General.--Subpart A of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to nonrefundable 
personal credits) is amended by inserting after section 25A the 
following new section:

``SEC. 25B. RETIREMENT SAVINGS.

    ``(a) Allowance of Credit.--In the case of an individual, there 
shall be allowed as a credit against the tax imposed by this chapter 
for the taxable year an amount equal to 50 percent of the amount which 
would (but for subsection (c)) be allowed as a deduction under section 
219 for such taxable year.
    ``(b) Limitation Based on Adjusted Gross Income.--
            ``(1) In general.--The amount of the credit which would 
        (but for this subsection) be allowed under subsection (a) for 
        the taxable year shall be reduced (but not below zero) by an 
        amount which bears the same ratio to such amount of credit as--
                    ``(A) the excess of--
                            ``(i) the taxpayer's adjusted gross income 
                        for such taxable year, over
                            ``(ii) the applicable dollar amount, bears 
                        to
                    ``(B) $10,000.
            ``(2) Rounding.--Any amount determined under this 
        subsection which is not a multiple of $10 shall be rounded to 
        the next lowest $10.
            ``(3) Applicable dollar amount.--For purposes of this 
        subsection, the term `applicable dollar amount' means--
                    ``(A) in the case of a taxpayer filing a joint 
                return, $45,000,
                    ``(B) in the case of any other taxpayer (other than 
                a married individual filing a separate return), 
                $25,000, and
                    ``(C) in the case of a married individual filing a 
                separate return, zero.
        The rule of section 219(g)(4) shall apply for purposes of this 
        paragraph.
    ``(c) Coordination With Deduction.--No deduction shall be allowed 
under section 219 for amount paid by or on behalf of an individual for 
any taxable year if any such amount (with respect to such individual) 
is taken into account in determining the credit under this section for 
such year.''.
    (b) Clerical Amendment.--The table of sections for such subpart A 
is amended by inserting after the item relating to section 25A the 
following new item:

                              ``Sec. 25B. Retirement savings.''
    (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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