[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2021 Introduced in House (IH)]
111th CONGRESS
1st Session
H. R. 2021
To help rebuild retirement, college, and personal savings.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 22, 2009
Mr. Boehner (for himself, Mr. Camp, Mr. McKeon, Mr. Kline of Minnesota,
Mr. Tiberi, Mr. Royce, Mr. Sam Johnson of Texas, Mrs. Bachmann, Mr.
Paulsen, Mr. Heller, Ms. Jenkins, Mr. Latta, Mr. Guthrie, Mr. Dreier,
Mr. Sessions, Mr. Blunt, Mr. Lee of New York, Mr. Herger, Mr. Burton of
Indiana, Mr. McCarthy of California, Mr. Carter, and Mr. Pence)
introduced the following bill; which was referred to the Committee on
Ways and Means, and in addition to the Committee on Education and
Labor, for a period to be subsequently determined by the Speaker, in
each case for consideration of such provisions as fall within the
jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To help rebuild retirement, college, and personal savings.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Savings Recovery
Act of 2009''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--INCREASE IN EXEMPT AMOUNT UNDER SOCIAL SECURITY EARNINGS TEST
Sec. 101. Increase in monthly exempt amount under the Social Security
earnings test for individuals who have not
attained retirement age.
TITLE II--CAPITAL GAINS AND LOSSES
Sec. 201. Exclusion of certain dividends and long-term capital gains of
noncorporate taxpayers.
Sec. 202. Increase in limitation on capital losses of noncorporate
taxpayers.
TITLE III--SAVINGS FOR HIGHER EDUCATION
Sec. 301. Credit for contributions to 529 plans.
Sec. 302. Investment direction under qualified tuition programs.
TITLE IV--RETIREMENT PLANS
Subtitle A--Individual Retirement Plans and Defined Contribution Plans
Sec. 401. Elimination of marriage penalties in income limitations with
respect to individual retirement plan
contributions.
Sec. 402. Increase in dollar limitations on contributions to retirement
plans.
Sec. 403. Increase in permitted catch-up contributions to retirement
plans.
Sec. 404. Extension of waiver of required minimum distribution rules.
Sec. 405. Provisions relating to plan or contract amendments.
Subtitle A--Defined Benefit Plans
Sec. 411. Expansion of corridor within which single-employer defined
benefit plans are allowed to average asset
values.
Sec. 412. Extended period for single-employer defined benefit plans to
amortize the shortfall amortization base
for 2009 and 2010.
TITLE I--INCREASE IN EXEMPT AMOUNT UNDER SOCIAL SECURITY EARNINGS TEST
SEC. 101. INCREASE IN MONTHLY EXEMPT AMOUNT UNDER THE SOCIAL SECURITY
EARNINGS TEST FOR INDIVIDUALS WHO HAVE NOT ATTAINED
RETIREMENT AGE.
(a) In General.--Section 203(f)(8) of the Social Security Act (42
U.S.C. 403(f)(8)) is amended--
(1) by redesignating subparagraph (E) as subparagraph (F);
and
(2) by inserting after subparagraph (D) the following new
subparagraph:
``(E) Notwithstanding any other provision of this
subsection, the exempt amount which is applicable to an
individual who has not attained retirement age before the close
of the taxable year ending after 2008 and before 2010 shall be,
for each month of such taxable year, $2,360.''.
(b) Conforming Amendments.--Section 203(f) of such Act is amended--
(1) in paragraph (8)(B)--
(A) by striking ``subparagraph (D))'' and all that
follows through ``individuals),'' in the matter in
clause (ii) preceding subclause (I), and inserting
``subparagraph (D)) or the taxable year ending after
2008 and before 2010 (with respect to other
individuals),''; and
(B) by striking ``subparagraph (D))'' and all that
follows through ``individuals),'' in clause (ii)(II),
and inserting ``subparagraph (D)) or 2007 (with respect
to other individuals),''; and
(2) in paragraph (9), by striking ``and (8)(E)'' and
inserting ``(8)(E), and (8)(F)''.
(c) Effective Date.--The amendments made by this section shall
apply for taxable years ending after 2008 in the case of individuals
who have not, with respect to the taxable year involved, attained
retirement age (within the meaning of section 203(f)(9) of the Social
Security Act) before the close of such taxable year.
TITLE II--CAPITAL GAINS AND LOSSES
SEC. 201. EXCLUSION OF CERTAIN DIVIDENDS AND LONG-TERM CAPITAL GAINS OF
NONCORPORATE TAXPAYERS.
(a) In General.--Part III of subchapter B of chapter 1 of the
Internal Revenue Code of 1986 is amended by inserting after section
139C the following new section:
``SEC. 139D. CERTAIN DIVIDENDS AND LONG-TERM CAPITAL GAINS.
``(a) In General.--In the case of a taxpayer other than a
corporation, gross income shall not include--
``(1) any qualified dividend income (as defined in section
1(h)(11)(B), determined without regard to clause (ii)(IV)
thereof and without regard to section 303 of the Jobs and
Growth Tax Relief Reconciliation Act of 2003) received during
2009 or 2010, and
``(2) any gain from the sale or exchange of qualified
property held for more than 1 year if such asset was acquired
by purchase (as defined in section 179(d)(2)) during 2009 or
2010.
``(b) Qualified Property.--For purposes of this section, the term
`qualified property' means--
``(1) any security (as defined in section 475(c)(2)
determined without regard to the last sentence thereof), and
``(2) any nonresidential real property (as defined in
section 168(e)(2)(B)).
``(c) Special Rules.--
``(1) Exception for unrecaptured section 1250 gain.--
Subsection (a) shall not apply to any gain which would be
treated as ordinary income if section 1250(b)(1) included all
depreciation and the applicable percentage under section
1250(a) were 100 percent.
``(2) Treatment of long-term section 1256 gain.--Gain on a
section 1256 contract which is treated as long-term capital
gain under section 1256 shall be treated for purposes of this
section as gain on the sale of qualified property held for more
than 1 year.
``(3) Application of certain rules.--Rules similar to the
rules of section 1202(k) shall apply for purposes of this
section.''.
(b) Conforming Amendments.--
(1) Section 1(h)(11)(B)(ii) of such Code is amended by
striking ``and'' at the end of subclause (II), by striking the
period at the end of subclause (III) and inserting ``, and'',
and by adding at the end the following new subclause:
``(IV) any dividend excluded from
gross income under section 139D.''.
(2) The table of sections for part III of subchapter B of
chapter 1 of such Code is amended by inserting after the item
relating to section 139C the following new item:
``Sec. 139D. Certain dividends and long-term capital gains.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years ending after December 31, 2008.
SEC. 202. INCREASE IN LIMITATION ON CAPITAL LOSSES OF NONCORPORATE
TAXPAYERS.
(a) In General.--Subsection (b) of section 1211 of the Internal
Revenue Code of 1986 is amended to read as follows:
``(b) Other Taxpayers.--
``(1) In general.--In the case of a taxpayer other than a
corporation, losses from sales or exchanges of capital assets
shall be allowed only to the extent of the gains from such
sales or exchanges, plus (if such losses exceed such gains) the
lower of--
``(A) $10,000 (half of such amount in the case of a
married individual filing a separate return), or
``(B) the excess of such losses over such gains.
``(2) Inflation adjustment.--In the case of any taxable
year beginning in a calendar year after 2009, the $10,000
amount contained in paragraph (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 the calendar year in which
the taxable year begins, determined by substituting
`calendar year 2008' for `calendar year 1992' in
subparagraph (B) thereof.
Any increase determined under the preceding sentence shall be
rounded to the nearest multiple of $250.''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2008.
TITLE III--SAVINGS FOR HIGHER EDUCATION
SEC. 301. CREDIT FOR CONTRIBUTIONS TO 529 PLANS.
(a) In General.--Subsection (d) of section 25B of the Internal
Revenue Code of 1986 (relating to elective deferrals and IRA
contributions by certain individuals) is amended by redesignating
paragraph (2) as paragraph (3) and by inserting after paragraph (1) the
following new paragraph:
``(2) Contributions to qualified tuition programs.--
``(A) In general.--The term `qualified savings
contribution' includes the amount of any purchase or
contribution described in paragraph (1)(A) of section
529(b) to a qualified tuition program (as defined in
such section) if--
``(i) the taxpayer has the power to
authorize distributions and otherwise
administer the account, and
``(ii) the designated beneficiary of such
purchase or contribution is the taxpayer, the
taxpayer's spouse, or an individual with
respect to whom the taxpayer is allowed a
deduction under section 151.
``(B) Limitation based on compensation.--The amount
treated as a qualified savings contribution by reason
of subparagraph (A) for any taxable year shall not
exceed the sum of--
``(i) the compensation (as defined in
section 219(f)(1)) includible in the taxpayer's
gross income for the taxable year, and
``(ii) the amount excluded from the
taxpayer's gross income under section 112
(relating to combat pay) for such year.
``(C) Determination of adjusted gross income.--
Solely for purposes of determining the applicable
percentage under subsection (b) which applies with
respect to the amount treated as a qualified savings
contribution by reason of subparagraph (A), adjusted
gross income (determined without regard to this
subparagraph) shall be increased by the excess (if any)
of--
``(i) the social security benefits received
during the taxable year (within the meaning of
section 86), over
``(ii) the amount included in gross income
for such year under section 86.''.
(b) Conforming Amendments.--
(1) Section 25B of such Code is amended by striking
``qualified retirement savings'' each place it appears in the
text and inserting ``qualified savings''.
(2) The subsection heading for section 25B(d) of such Code
is amended by striking ``Retirement''.
(3) Subparagraph (A) of section 25B(d)(3) of such Code, as
redesignated by subsection (a), is amended--
(A) by striking ``paragraph (1)'' the first place
it appears and inserting ``paragraph (1) or (2)'', and
(B) by striking ``paragraph (1)'' the second place
it appears and inserting ``paragraph (1), or (2), as
the case may be,''.
(4) The heading for section 25B of such Code is amended by
striking ``and ira contributions'' and inserting ``, ira
contributions, and qualified tuition program contributions''.
(5) The table of sections for subpart A of part IV of
subchapter A of chapter 1 of such Code is amended by striking
the item relating to section 25B and inserting the following
new item:
``Sec. 25B. Elective deferrals, IRA contributions, and qualified
tuition program contributions by certain
individuals.''.
(c) Effective Date.--The amendments made by this section shall
apply to contributions made after December 31, 2008.
SEC. 302. INVESTMENT DIRECTION UNDER QUALIFIED TUITION PROGRAMS.
(a) In General.--Paragraph (4) of section 529(b) of the Internal
Revenue Code of 1986 (relating to investment direction) is amended by
striking the period at the end and inserting ``more frequently than 2
times per calendar year.''.
(b) Effective Date.--The amendments made by this section shall
apply to years beginning after December 31, 2008.
TITLE IV--RETIREMENT PLANS
Subtitle A--Individual Retirement Plans and Defined Contribution Plans
SEC. 401. ELIMINATION OF MARRIAGE PENALTIES IN INCOME LIMITATIONS WITH
RESPECT TO INDIVIDUAL RETIREMENT PLAN CONTRIBUTIONS.
(a) Elimination of Marriage Penalty in Limitation on Deduction for
IRA Contributions.--
(1) In general.--Subparagraph (B) of section 219(g)(3) of
the Internal Revenue Code of 1986 is amended to read as
follows:
``(B) Applicable dollar amount.--
``(i) In general.--The term `applicable
dollar amount' means $50,000 (twice such amount
in the case of a joint return).
``(ii) Married individuals filing a
separate return.--In the case of a married
individual filing a separate return, the
applicable dollar amount is zero.''.
(2) Conforming amendment.--Paragraph (8) of section 219(g)
of such Code is amended by striking ``the dollar amount in the
last row of the table contained in paragraph (3)(B)(i), the
dollar amount in the last row of the table contained in
paragraph (3)(B)(ii), and the dollar amount contained in
paragraph (7)(A)'' and inserting ``the dollar amounts contained
in paragraphs (3)(B)(i) and (7)(A)''.
(b) Elimination of Marriage Penalty in Limitation on Roth IRA
Contributions.--
(1) In general.--Subclause (I) of section 408A(c)(3)(C)(ii)
of such Code is amended by striking ``$150,000'' and inserting
``twice the amount in effect under subclause (II)''.
(2) Conforming amendment.--Subparagraph (E) of section
408A(c)(3) of such Code is amended by striking ``the dollar
amounts in subclauses (I) and (II) of subparagraph (C)(ii)
shall each'' and inserting ``the dollar amount in subparagraph
(C)(ii)(II) shall''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2008.
SEC. 402. INCREASE IN DOLLAR LIMITATIONS ON CONTRIBUTIONS TO RETIREMENT
PLANS.
(a) Permanent Increase in Dollar Limitation on Deduction for
Contributions to Individual Retirement Plans.--
(1) In general.--Paragraph (5) of section 219(b) of the
Internal Revenue Code of 1986 is amended--
(A) by amending subparagraph (A) to read as
follows:
``(A) In general.--The deductible amount for any
taxable year is the applicable dollar amount in effect
under section 402(g)(1) for such taxable year.'', and
(B) by striking subparagraph (D).
(2) Simple retirement accounts.--Subparagraph (E) of
section 408(p)(2) of such Code is amended to read as follows:
``(E) Applicable dollar amount.--For purposes of
subparagraph (A)(ii), the applicable dollar amount for
any taxable year is the applicable dollar amount in
effect under section 402(g)(1) for such taxable
year.''.
(b) Temporary Increase in Contributions to Defined Contribution
Plans.--
(1) Increase in limitation on elective deferrals.--
Paragraph (1) of section 402(g) of such Code is amended by
adding at the end the following new subparagraph:
``(D) Temporary increase in applicable dollar
amount.--In the case of taxable years beginning in
calendar year 2009, 2010, or 2011, the applicable
dollar amount determined under subparagraph (B) shall
not be less than $33,000.''.
(2) Increase in combined employee and employer limitation
on contributions to defined contribution plans.--Paragraph (1)
of section 415(c) of such Code is amended by adding at the end
the following new flush sentence:
``In the case of years beginning in calendar year 2009, 2010,
or 2011, the dollar amount in effect under subparagraph (A)
shall not be less than $65,500.''.
(c) Effective Date.--The amendments made by this section shall
apply to years beginning after December 31, 2008.
SEC. 403. INCREASE IN PERMITTED CATCH-UP CONTRIBUTIONS TO RETIREMENT
PLANS.
(a) Permanent Increase in Annual Catch-Up Contribution Limitation
for Individual Retirement Plans.--
(1) In general.--Clause (ii) of section 219(b)(5)(B) of the
Internal Revenue Code of 1986 is amended to read as follows:
``(ii) Applicable amount.--For purposes of
clause (i), the applicable amount for any
taxable year is the applicable dollar amount in
effect under section 414(v)(2)(B) for such
taxable year.''.
(2) Simple retirement accounts.--
(A) In general.--Subparagraph (B) of section
414(v)(2) of such Code is amended to read as follows:
``(B) Applicable dollar amount.--For purposes of
this paragraph, the applicable dollar amount is
$5,000.''.
(B) Conforming amendments.--
(i) Subparagraph (C) of section 402(g)(1)
of such Code is amended by striking ``section
414(v)(2)(B)(i)'' and inserting ``section
414(v)(2)(B)''.
(ii) Subparagraph (C) of section 414(v)(2)
of such Code is amended by striking
``subparagraph (B)(i) and the $2,500 amount in
subparagraph (B)(ii)'' and inserting
``subparagraph (B)''.
(iii) Clause (ii) of section 457(e)(18)(A)
of such Code is amended by striking ``section
414(v)(2)(B)(i)'' and inserting ``section
414(v)(2)(B)''.
(b) Temporary Increase in Permitted Catch-Up Contributions.--
Subparagraph (B) of section 414(v)(2) of such Code, as amended by
subsection (a), is amended by adding at the end the following: ``In the
case of taxable years beginning in 2009, 2010, or 2011, the applicable
dollar amount in effect under the preceding sentence shall not be less
than $10,000.''.
(c) Effective Date.--The amendments made by this section shall
apply to years beginning after December 31, 2008.
SEC. 404. EXTENSION OF WAIVER OF REQUIRED MINIMUM DISTRIBUTION RULES.
(a) In General.--Subparagraph (H) of section 401(a)(9) of the
Internal Revenue Code of 1986 is amended--
(1) by striking ``calendar year 2009'' in clause (i) and
inserting ``calendar years 2009, 2010, 2011, and 2012'',
(2) by striking ``2009'' in clause (ii)(I) and inserting
``2012'', and
(3) by striking ``calendar year 2009'' in clause (ii)(II)
and inserting ``calendar years 2009, 2010, 2011, and 2012''.
(b) Eligible Rollover Distributions.--The last sentence of section
402(c)(4) of such Code is amended--
(1) by striking ``2009'' the first place it appears and
inserting ``calendar year 2009, 2010, 2011, or 2012'', and
(2) by striking ``2009'' the second place it appears and
inserting ``such calendar years''.
(c) Effective Date.--The amendments made by this section shall
apply for calendar years beginning after December 31, 2009.
SEC. 405. PROVISIONS RELATING TO PLAN OR CONTRACT AMENDMENTS.
(a) In General.--If this section applies to any pension plan or
contract amendment, such pension plan or contract shall not fail to be
treated as being operated in accordance with the terms of the plan
solely because the plan operates in accordance with the amendments made
by sections 402, 403, and 404.
(b) Amendments to Which Section Applies.--This section shall apply
to any amendment to any pension plan or annuity contract which--
(1) is made pursuant to the amendments made by section 402,
403, or 404, and
(2) is made on or before the last day of the first plan
year beginning on or after January 1, 2012 (January 1, 2013, in
the case of a governmental plan).
Subtitle A--Defined Benefit Plans
SEC. 411. EXPANSION OF CORRIDOR WITHIN WHICH SINGLE-EMPLOYER DEFINED
BENEFIT PLANS ARE ALLOWED TO AVERAGE ASSET VALUES.
(a) Amendment to ERISA.--Paragraph (3) of section 303(g) of the
Employee Retirement Income Security Act of 1974 is amended by adding at
the end the following new subparagraph:
``(C) Special rule for 2009 and 2010.--In the case
of plan years beginning in 2009 or 2010, subparagraph
(B)(iii) shall be applied--
``(i) by substituting `80 percent' for `90
percent', and
``(ii) by substituting `120 percent' for
`110 percent'.''.
(b) Amendment to IRC.--Paragraph (3) of section 430(g) of the
Internal Revenue Code of 1986 is amended by adding at the end the
following new subparagraph:
``(C) Special rule for 2009 and 2010.--In the case
of plan years beginning in 2009 or 2010, subparagraph
(B)(iii) shall be applied--
``(i) by substituting `80 percent' for `90
percent', and
``(ii) by substituting `120 percent' for
`110 percent'.''.
(c) Effective Date.--The amendments made by this section shall
apply to plan years beginning after December 31, 2008.
SEC. 412. EXTENDED PERIOD FOR SINGLE-EMPLOYER DEFINED BENEFIT PLANS TO
AMORTIZE THE SHORTFALL AMORTIZATION BASE FOR 2009 AND
2010.
(a) Amendments to ERISA.--
(1) In general.--Paragraph (2) of section 303(c) of the
Employee Retirement Income Security Act of 1974 is amended by
adding at the end the following new subparagraph:
``(D) Special rule for 2009 and 2010.--In the case
of the shortfall amortization base of the plan for any
plan year beginning in 2009 or 2010 (hereafter in this
subparagraph referred to as the `base year')--
``(i) Determination of installments.--The
shortfall amortization installments are--
``(I) in the case of the last 7
plan years in the 9-plan-year period
beginning with the base year, the
amounts necessary to amortize the
shortfall amortization base of the plan
for the base year in level annual
installments over such last 7 plan
years, and
``(II) in the case of the first 2
plan years in such 9-plan-year period,
interest on such shortfall amortization
base (determined as provided in
subparagraph (C)).
``(ii) Shortfall installment.--The
shortfall amortization installment for any plan
year in the 9-plan-year period under clause (i)
with respect to such shortfall amortization
base is the annual installment determined under
clause (i) for that year for that base.''.
(2) Conforming amendment.--Paragraph (1) of section 303(c)
of such Act is amended by striking ``the shortfall amortization
bases for such plan year and each of the 6 preceding plan
years'' and inserting ``any shortfall amortization base which
has not been fully amortized under this subsection''.
(b) Amendments to IRC.--
(1) In general.--Paragraph (2) of section 430(c) of the
Internal Revenue Code of 1986 is amended by adding at the end
the following new subparagraph:
``(D) Special rule for 2009 and 2010.--In the case
of the shortfall amortization base of the plan for any
plan year beginning in 2009 or 2010 (hereafter in this
subparagraph referred to as the `base year')--
``(i) Determination of installments.--The
shortfall amortization installments are--
``(I) in the case of the last 7
plan years in the 9-plan-year period
beginning with the base year, the
amounts necessary to amortize the
shortfall amortization base of the plan
for the base year in level annual
installments over such last 7 plan
years, and
``(II) in the case of the first 2
plan years in such 9-plan-year period,
interest on such shortfall amortization
base (determined as provided in
subparagraph (C)).
``(ii) Shortfall installment.--The
shortfall amortization installment for any plan
year in the 9-plan-year period under clause (i)
with respect to such shortfall amortization
base is the annual installment determined under
clause (i) for that year for that base.''.
(2) Conforming amendment.--Paragraph (1) of section 430(c)
of such Code is amended by striking ``the shortfall
amortization bases for such plan year and each of the 6
preceding plan years'' and inserting ``any shortfall
amortization base which has not been fully amortized under this
subsection''.
(c) Effective Date.--The amendments made by this section shall
apply to plan years beginning after December 31, 2008.
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