[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5558 Introduced in House (IH)]







107th CONGRESS
  2d Session
                                H. R. 5558

To amend the Internal Revenue Code of 1986 to accelerate the increases 
in contribution limits to retirement plans and to increase the required 
         beginning date for distributions from qualified plans.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 7, 2002

  Mr. Thomas 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 accelerate the increases 
in contribution limits to retirement plans and to increase the required 
         beginning date for distributions from qualified 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 ``Retirement Savings and Security Act 
of 2002''.

SEC. 2. ACCELERATION OF INCREASES IN IRA CONTRIBUTION LIMIT.

    (a) Deductible Amount.--Subparagraph (A) of section 219(b)(5) of 
the Internal Revenue Code of 1986 is amended to read as follows:
                    ``(A) In general.--The deductible amount shall be 
                $5,000.''.
    (b) Catch-up Amount.--Subparagraph (B) of section 219(b)(5) of such 
Code is amended to read as follows:
                    ``(B) Catch-up contributions for individuals 50 or 
                older.--In the case of an individual who has attained 
                the age of 50 before the close of the taxable year, the 
                dollar amount in effect under paragraph (1)(A) for such 
                taxable year (determined without regard to this 
                paragraph) shall be increased by $1,000.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2002.

SEC. 3. ACCELERATION OF SCHEDULED INCREASES IN PENSION PLAN 
              CONTRIBUTION LIMITS.

    (a) Elective Deferrals.--Subparagraph (B) of section 402(g)(1) of 
the Internal Revenue Code of 1986 is amended by striking ``the amount 
determined'' and all that follows and inserting ``$15,000.''.
    (b) Deferred Compensation Plans of State and Local Governments and 
Tax-Exempt Organizations.--Subparagraph (A) of section 457(e)(15) of 
such Code is amended by striking ``the amount determined'' and all that 
follows and inserting ``$15,000.''.
    (c) Simple Retirement Accounts.--Clause (i) of section 408(p)(2)(E) 
of such Code is amended by striking ``the amount determined'' and all 
that follows and inserting ``$10,000.''.
    (d) Catch-up Contributions.--Subparagraph (B) of section 
414(v)(2)(B) of such Code is amended--
            (1) in clause (i) by striking ``determined'' and all that 
        follows and inserting ``$5,000.'', and
            (2) in clause (ii) by striking ``determined'' and all that 
        follows and inserting ``$2,500.''.
    (e) Effective Date.--The amendments made by this section shall 
apply to years beginning after December 31, 2002.

SEC. 4. SIMPLIFICATION AND UPDATING OF THE MINIMUM DISTRIBUTION RULES.

    (a) Required Distributions.--
            (1) Increase in age for required beginning date.--
        Subparagraphs (C)(i)(I) and (C)(ii)(I) of section 401(a)(9) of 
        the Internal Revenue Code of 1986 are each amended by striking 
        ``70\1/2\'' and inserting ``applicable age''.
            (2) Applicable age.--Subparagraph (C) of section 401(a)(9) 
        of such Code is amended by inserting at the end the following 
        new clause:
                            ``(v) Applicable age.--The applicable age 
                        shall be determined in accordance with the 
                        following table:

      ``Calendar year:                               Applicable age is:
                        2003 and 2004..........................     73 
                        2005 and 2006..........................     74 
                        2007 and thereafter....................   75''.
            (3) Actuarial adjustment of benefit under defined benefit 
        plan.--Clause (iii) of section 401(a)(9)(C) of such Code is 
        amended to read as follows:
                            ``(iii) Actuarial adjustment.--
                                    ``(I) In general.--In the case of a 
                                defined benefit plan, an employee's 
                                accrued benefit shall be actuarially 
                                increased to take into account the 
                                period after the applicable date during 
                                which the employee was not eligible to 
                                receive any benefits under the plan.
                                    ``(II) Applicable date.--For 
                                purposes of clause (I), the term 
                                `applicable date' means the April 1st 
                                following the calendar year in which 
                                the employee attains age 70\1/2\.''.
    (b) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        apply to years beginning after December 31, 2002.
            (2) Transition.--A plan shall not be treated as failing to 
        meet the requirements of section 401(a)(9) of the Internal 
        Revenue Code of 1986 merely because, in years beginning after 
        December 31, 2002, no distribution is made to an employee 
        before the employee's required beginning date, as determined in 
        accordance with the amendments made by this section.
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