110 HR 2163 IH: Kids Invest and Develop Savings Act of
U.S. House of Representatives
2007-05-03
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.This Act may be cited as the
Kids Invest and Develop Savings Act of
2007
.
2.Expansion of
Savers credit
(a)Subsections (a) and (b) of section 25B of such Code are
amended to read as follows:
(a)In the case of an
eligible individual, there shall be allowed as a credit against the tax imposed
by this subtitle for the taxable year an amount equal to the qualified
retirement savings contributions of the eligible individual for the taxable
year.
(b)
(1)The amount allowed as a credit under subsection (a) for a
taxable year shall not exceed the applicable dollar limit.
(2)For purposes of paragraph (1)—
(A)Except as provided in subparagraph (B), the applicable
dollar limit is—
(i)in the case of a joint return, $3,000,
and
(ii)in the case of any other return, 50 percent
of the dollar amount applicable for the taxable year under clause (i).
(B)Limitation based
on adjusted gross incomeThe applicable dollar limit shall be
zero in the case of a taxpayer whose adjusted gross income for the taxable year
exceeds—
(i)$150,000 in the
case of a joint return, and
(ii)$95,000 in any other case.
(3)In the case of any
taxable year beginning after 2007, the amounts contained in subparagraph (A)(i)
and clauses (i) and (ii) of subparagraph (B) of paragraph (2) shall each 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 2006
for calendar year
1992
in subparagraph (B) thereof.
If any
amount as adjusted under the preceding sentence is not a multiple of $100, such
amount shall be rounded to the nearest multiple of
$100..
(b)Credit allowed
for contributions to Roth IRAs for children
(1)Paragraph (1) of section 25B(d) of such Code (defining
qualified retirement savings contributions) is amended by striking
and
at the end of subparagraph (B), by striking the period at
the end of subparagraph (C) and inserting , and
, and by
inserting after subparagraph (C) the following new subparagraph:
(D)the amount of
contributions made by the eligible individual to all Roth IRAs for children
under section
408A(g).
.
(2)Paragraph
(1) of section 25B(d) of such Code (defining qualified retirement savings
contributions) is amended by adding at the end the following flush sentence:
The amount taken into account under subparagraph (D) shall not exceed
the aggregate amount of contributions allowed to all Roth IRAs of such eligible
individual under section 408A(g).
.
(c)The amendments made by this section shall apply to taxable
years beginning after December 31, 2006.
3.
(a)Section 408A of the Internal Revenue Code of 1986
(relating to Roth IRAs) is amended by adding at the end the following new
subsection:
(g)Special rules
for Roth IRAs for children
(1)A Roth IRA maintained
for the benefit of an individual who has not attained age 25 before the close
of the taxable year shall be maintained under this section, as modified by this
subsection.
(2)
(A)For so long as a Roth
IRA is subject to this subsection, contributions to such Roth IRA shall be
subject to this paragraph and not to subsection (c)(2), and subsection (c)(3)
shall not apply.
(B)The
aggregate amount of contributions for any taxable year to all child Roth IRAs
maintained for the benefit of an individual under this subsection shall not
exceed the maximum amount allowable as a deduction under subsection (b)(1) of
section 219 for such taxable year (computed without regard to subsections
(b)(1)(B), (d)(1), and (g) of such
section).
.
(b)Enforcement of
contribution limitsParagraphs (1)(B) and (2)(B) of section
4973(f) of such Code are each amended by striking and (c)(3)
and
inserting , (c)(3), and (g)(2)
.
(c)The amendments made by this section shall apply to taxable
years beginning after December 31, 2006.