[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 686 Introduced in House (IH)]







108th CONGRESS
  1st Session
                                H. R. 686

To amend the Internal Revenue Code of 1986 to accelerate the scheduled 
    increases in eligibility for individual retirement plans and to 
    eliminate the marriage penalty in determining such eligibility.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 11, 2003

 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 accelerate the scheduled 
    increases in eligibility for individual retirement plans and to 
    eliminate the marriage penalty in determining such eligibility.

    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 ``Marriage IRA Fairness Act of 2003''.

SEC. 2. ACCELERATION OF SCHEDULED INCREASES IN ELIGIBILITY FOR 
              INDIVIDUAL RETIREMENT PLANS; ELIMINATION OF MARRIAGE 
              PENALTY IN ELIGIBILITY.

    (a) Deductible Individual Retirement Plans.--
            (1) Increase in phaseout thresholds.--
                    (A) In general.--Subclause (II) of section 
                219(g)(2)(A)(i) of the Internal Revenue Code of 1986 is 
                amended to read as follows:
                                    ``(II) $50,000 (twice such amount 
                                in the case of a joint return), bears 
                                to''.
                    (B) Conforming amendment.--Subsection (g) of 
                section 219 of such Code is amended by striking 
                paragraphs (3) and (4) and by inserting after paragraph 
                (2) the following new paragraphs:
            ``(3) Adjusted gross income.--For purposes of this 
        subsection, adjusted gross income of any taxpayer shall be 
        determined--
                    ``(A) after application of sections 86 and 469, and
                    ``(B) without regard to sections 135, 137, 221, 
                222, and 911 or the deduction allowable under this 
                section.
            ``(4) Cost-of-living adjustment.--In the case of any 
        taxable year beginning in a calendar year after 2003, the 
        $50,000 amount under paragraph (2)(A)(i)(II) 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 the calendar year in which 
                the taxable year begins, determined by substituting 
                `calendar year 2002' for `calendar year 1992' in 
                subparagraph (B) thereof.
        If any amount after adjustment under the preceding sentence is 
        not a multiple of $500, such amount shall be rounded to the 
        nearest multiple of $500.''.
            (2) Increase on phaseout range.--Clause (ii) of section 
        219(g)(2)(A) of such Code is amended by striking ``for a 
        taxable year beginning after December 31, 2006''.
    (b) Roth IRA's.--
            (1) In general.--Clause (ii) of section 408A(c)(3)(C) of 
        such Code is amended--
                    (A) by striking ``$150,000,'' in subclause (I) and 
                inserting ``twice the amount under subclause (II), 
                and'',
                    (B) by striking ``(other than a married individual 
                filing a separate return), $95,000, and'' in subclause 
                (II) and inserting ``, $95,000.'', and
                    (C) by striking subclause (III).
            (2) Cost-of-living adjustment.--Paragraph (3) of section 
        408A(c) of such Code is amended by adding at the end the 
        following new subparagraph:
                    ``(E) Cost-of-living adjustment.--In the case of 
                any taxable year beginning in a calendar year after 
                2003, the $95,000 amount under subparagraph (C)(ii)(II) 
                shall be increased by an amount equal to--
                            ``(i) such dollar amount, multiplied by
                            ``(ii) the cost-of-living adjustment 
                        determined under section 1(f)(3) for the 
                        calendar year in which the taxable year begins, 
                        determined by substituting `calendar year 2002' 
                        for `calendar year 1992' in subparagraph (B) 
                        thereof.
                If any amount after adjustment under the preceding 
                sentence is not a multiple of $500, such amount shall 
                be rounded to the nearest multiple of $500.''.
    (c) Elimination of Marriage Penalty on IRA Deduction for Active 
Pension Plan Participants.--Section 219(g) of such Code is amended--
            (1) by striking ``or the individual's spouse'' in paragraph 
        (1), and
            (2) by striking paragraph (7).
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2002.
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