[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1322 Introduced in House (IH)]







106th CONGRESS
  1st Session
                                H. R. 1322

 To amend the Internal Revenue Code of 1986 to increase the limits on 
  the amount of nondeductible contributions to individual retirement 
     plans and to adjust the amount of deductible contributions to 
             individual retirement accounts for inflation.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 25, 1999

Mr. Gallegly (for himself, Mrs. Emerseon, Mr. Frost, Mr. Shows, and Mr. 
   Weygand) 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 and to adjust the amount of deductible contributions to 
             individual retirement accounts for inflation.

    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''.

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'', and
            (2) in subsection (b) by striking ``$2,000'' both places it 
        appears 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 in the matter preceding subclause (I) by 
striking ``excess of--'' and inserting ``excess of $5,000, over''.
    (c) Contributions to Roth IRA's.--Subparagraph (A) of section 
408A(c)(2) (relating to contribution limit) is amended to read as 
follows:
                    ``(A) $5,000, over''.
    (d) Inflation Adjustment In Amounts Allowable as Deductible IRA 
Contributions.--Subsection (f) of section 219 of such Code (relating to 
other definitions and special rules) is amended by redesignating 
paragraph (7) as paragraph (8) and by inserting after paragraph (6) the 
following new paragraph:
            ``(7) Inflation adjustment.--In the case of a taxable year 
        beginning in a calendar year after 1999, the $2,000 amount set 
        forth in subsection (b)(1)(A) shall be increased by an amount 
        equal to--
                    ``(A) such dollar amount, multiplied by
                    ``(B) the cost-of-living adjustment determined 
                under section 1(f)(3) for such calendar year by 
                substituting `calendar year 1998' for `calendar year 
                1992' in subparagraph (B) thereof.
        If any increase determined under the preceding sentence is not 
        a multiple of $50, such increase shall be rounded to the 
        nearest multiple of $50.''.
    (e) Technical and Conforming Amendments.--
            (1) Subsection (j) of section 408 of such Code is amended 
        by striking ``the $2,000 amounts contained'' and inserting 
        ``the dollar limitations referred to''.
            (2) Paragraph (8) of section 408(p) of such Code is amended 
        by striking ``$2,000'' and inserting ``the dollar limitation in 
        effect under section 219(b)(1)(A)''.
            (3) Subsection (b) of section 4973 of such Code is 
        amended--
                    (A) in paragraph (1) by amending subparagraph (B) 
                to read as follows:
                    ``(B) the sum of--
                            ``(i) in the case of contributions for 
                        which a deduction is allowed under section 219, 
                        the amount allowable as a deduction under 
                        section 219 for such contributions, and
                            ``(ii) in the case of nondeductible 
                        contributions, the amount allowable as a 
                        contribution under section 408(o), and'', and
                    (B) in paragraph (2) by amending subparagraph (C) 
                to read as follows:
                    ``(C) the excess (if any) of--
                            ``(i) the sum of--
                                    ``(I) in the case of contributions 
                                for which a deduction is allowed under 
                                section 219, the maximum amount 
                                allowable as a deduction under section 
                                219 for the taxable year, and
                                    ``(II) in the case of nondeductible 
                                contributions, the amount allowable as 
                                a contribution under section 408(o), 
                                over
                            ``(ii) the amount contributed (determined 
                        without regard to section 219(f)(6)) to the 
                        accounts or for the annuities (including the 
                        amount contributed to a Roth IRA) for the 
                        taxable year.''.
    (f) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1998.
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