I 111th CONGRESS 1st Session H. R. 4361 IN THE HOUSE OF REPRESENTATIVES December 16, 2009 Mr. Campbell 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 eliminate contribution limitations for retirement plans and increase penalties attributable to such contributions.

1.

Short title

This Act may be cited as the Save More for Your Own Retirement Act of 2009.

2.

Repeal of contribution limitations for retirement plans

(a)

In general

(1)

Repeal of retirement contribution deduction limitations

(A)Subsection (b) of section 219 of the Internal Revenue Code of 1986 is amended to read as follows: (b)

Maximum amount of deduction

The amount allowable as a deduction under subsection (a) to any individual for any taxable year shall not exceed an amount equal to the compensation includible in the individual’s gross income for such taxable year. . (B)Section 219 of the Internal Revenue Code of 1986 is amended by striking subsections (c) and (g). (2)

Repeal of Roth IRA limitation

Paragraph (2) of section 408A(c) of such Code is amended by striking the excess (if any) of— and all that follows through the end and inserting the maximum amount allowable as a deduction under section 219 with respect to such individual for such taxable year (computed without regard to subsection (d)(1) of such section . (3)

Repeal of limitation on elective deferrals

Section 402 of such Code is amended by striking subsection (g). (b)

Effective date

The amendments made by this section shall apply to contributions made after December 31, 2009.

3.

Increase in penalty for early distributions attributable to increased contributions

(a)

In general

Subsection (t) of section 72 of such Code is amended by adding at the end the following new paragraph: (11)

Increased tax on early distributions attributable to increased contributions

(A)

In general

In the case of an amount received from a qualified retirement plan which is attributable to post-2009 excess contribution, paragraph (1) shall be applied by substituting 25 percent for 10 percent with respect to such amount. (B)

Post-2009 excess contribution

For purposes of this paragraph, the term post-2008 excess contribution means any contribution— (i)made to a qualified retirement plan for any period beginning after December 31, 2009, and (ii)to the extent such contribution exceeds the limitation which would (but for the Save More for Your Own Retirement Act of 2009) have applied with respect to such contribution for such period. . (b)

Effective date

The amendment made by this section shall apply to distributions made after December 31, 2009.