I 

108TH CONGRESS 

1ST SESSION H. R. 2240

To amend the Internal Revenue Code of 1986 to assist individuals who 

have lost their 401(k) savings to make additional retirement savings 

through individual retirement account contributions, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 22, 2003

Ms. HOOLEY of Oregon (for herself and Mr. WALDEN of Oregon) 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 assist 

individuals who have lost their 401(k) savings to make 

additional retirement savings through individual retirement account contributions, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Catch-Up Lost Retire5 ment Savings Act’’. 

6 SEC. 2. ALLOWANCE OF CATCH-UP PAYMENTS. 

7 (a) IN GENERAL.—Section 219(b)(5) of the Internal 

8 Revenue Code of 1986 (relating to deductible amount) is 
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1 amended by redesignating subparagraph (C) as subpara2 graph (D) and by inserting after subparagraph (A) the 

3 following new subparagraph: 

4 ‘‘(C) CATCH-UP CONTRIBUTIONS FOR CER5 TAIN INDIVIDUALS.—

6 ‘‘(i) IN GENERAL.—In the case of an 

7 eligible individual who elects to make a 

8 qualified retirement contribution in addi9 tion to the deductible amount determined 

10 under subparagraph (A)—

11 ‘‘(I) the deductible amount for 

12 any taxable year shall be increased by 

13 an amount equal to 3 times the appli14 cable amount determined under sub15 paragraph (B) for such taxable year, 

16 and 

17 ‘‘(II) subparagraph (B) shall not 

18 apply. 

19 ‘‘(ii) ELIGIBLE INDIVIDUAL.—For 

20 purposes of this subparagraph, the term 

21 ‘eligible individual’ means, with respect to 

22 any taxable year, any individual who was a 

23 qualified participant in a qualified cash or 

24 deferred arrangement (as defined in sec25 tion 401(k)) of an employer described in 
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1 clause (ii) under which the employer 

2 matched at least 50 percent of the employ3 ee’s contributions to such arrangement 

4 with stock of such employer. 

5 ‘‘(iii) EMPLOYER DESCRIBED.—An 

6 employer is described in this clause if, in 

7 any taxable year preceding the taxable year 

8 described in clause (ii)—

9 ‘‘(I) such employer (or any con10 trolling corporation of such employer) 

11 was a debtor in a case under title 11 

12 of the United States Code, or similar 

13 Federal or State law, and 

14 ‘‘(II) such employer (or any other 

15 person) was subject to an indictment 

16 or conviction resulting from business 

17 transactions related to such case. 

18 ‘‘(iv) QUALIFIED PARTICIPANT.—For 

19 purposes of clause (ii), the term ‘qualified 

20 participant’ means any eligible individual 

21 who was a participant in the cash or de22 ferred arrangement described in clause (i) 

23 at least 6 months before the filing of the 

24 case described in clause (iii). 
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1 ‘‘(v) TERMINATION.—This subpara2 graph shall not apply to taxable years be3 ginning after December 31, 2007.’’. 

4 (b) CREDIT ALLOWED FOR CATCH-UP CONTRIBU5 TIONS.—Subpart A of part IV of subchapter A of chapter 

6 1 of the Internal Revenue Code of 1986 (relating to non7 refundable personal credits) is amended by inserting after 

8 section 25B the following new section: 

9 ‘‘SEC. 25C. CERTAIN CATCH-UP IRA CONTRIBUTIONS. 

10 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of an eli11 gible individual who makes an election under section 

12 219(b)(5)(C) for the taxable year, there shall be allowed 

13 as a credit against the tax imposed by this chapter for 

14 such taxable year an amount equal to 50 percent of so 

15 much of the qualified retirement savings contributions of 

16 the eligible individual for the taxable year as do not exceed 

17 the increase in the deductible amount determined under 

18 section 219(b)(5)(C). 

19 ‘‘(b) DENIAL OF DOUBLE BENEFIT.—No deduction 

20 or other credit shall be allowed with respect to any con21 tribution to which a credit is allowed under subsection (a). 

22 ‘‘(c) INVESTMENT IN THE CONTRACT.—Notwith23 standing any other provision of law, a qualified retirement 

24 savings contribution shall not fail to be included in deter-
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1 mining the investment in the contract for purposes of sec2 tion 72 by reason of the credit under this section. 

3 ‘‘(d) TERMINATION.—This section shall not apply to 

4 taxable years beginning after December 31, 2007.’’. 

5 (c) CONFORMING AMENDMENT.—The table of sec6 tions for subpart A of part IV of subchapter A of chapter 

7 1 of the Internal Revenue Code of 1986 is amended by 

8 inserting after the item relating to section 25B the fol9 lowing new item:

‘‘Sec. 25C. Certain catch-up IRA contributions.’’.

10 (d) EFFECTIVE DATE.—The amendments made by 

11 this section shall apply to taxable years beginning after 

12 December 31, 2002.

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