I 

110TH CONGRESS 

1ST SESSION H. R. 2163 

To amend the Internal Revenue Code of 1986 to expand incentives for 

saving. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 3, 2007 

Mr. MACK (for himself, Mr. MILLER of Florida, Mr. MARIO DIAZ-BALART of 

Florida, Mr. BUCHANAN, Mr. ALEXANDER, Mr. BONNER, Mr. 

CRENSHAW, Mr. WESTMORELAND, Mr. FEENEY, Mrs. BONO, Mr. 

ENGLISH of Pennsylvania, Mr. SESSIONS, and Mr. CAMPBELL of California) 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 expand 

incentives for saving. 

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 ‘‘Kids Invest and De5 velop Savings Act of 2007’’. 


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1 SEC. 2. EXPANSION OF SAVERS CREDIT. 

2 (a) EXPANSION OF CREDIT.—Subsections (a) and (b) 

3 of section 25B of such Code are amended to read as fol4 lows: 

5 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of an eli6 gible individual, there shall be allowed as a credit against 

7 the tax imposed by this subtitle for the taxable year an 

8 amount equal to the qualified retirement savings contribu9 tions of the eligible individual for the taxable year. 

10 ‘‘(b) LIMITATION.— 

11 ‘‘(1) IN GENERAL.—The amount allowed as a 

12 credit under subsection (a) for a taxable year shall 

13 not exceed the applicable dollar limit. 

14 ‘‘(2) APPLICABLE DOLLAR LIMIT.—For pur15 poses of paragraph (1)— 

16 ‘‘(A) IN GENERAL.—Except as provided in 

17 subparagraph (B), the applicable dollar limit 

18 is— 

19 ‘‘(i) in the case of a joint return, 

20 $3,000, and 

21 ‘‘(ii) in the case of any other return, 

22 50 percent of the dollar amount applicable 

23 for the taxable year under clause (i). 

24 ‘‘(B) LIMITATION BASED ON ADJUSTED

25 GROSS INCOME.—The applicable dollar limit 

26 shall be zero in the case of a taxpayer whose 


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1 adjusted gross income for the taxable year ex2 ceeds— 

3 ‘‘(i) $150,000 in the case of a joint 

4 return, and 

5 ‘‘(ii) $95,000 in any other case. 

6 ‘‘(3) INFLATION ADJUSTMENT.—In the case of 

7 any taxable year beginning after 2007, the amounts 

8 contained in subparagraph (A)(i) and clauses (i) and 

9 (ii) of subparagraph (B) of paragraph (2) shall each 

10 be increased by an amount equal to— 

11 ‘‘(A) such dollar amount, multiplied by 

12 ‘‘(B) the cost-of-living adjustment deter13 mined under section 1(f)(3) for such calendar 

14 year by substituting ‘calendar year 2006’ for 

15 ‘calendar year 1992’ in subparagraph (B) 

16 thereof. 

17 If any amount as adjusted under the preceding sentence 

18 is not a multiple of $100, such amount shall be rounded 

19 to the nearest multiple of $100.’’. 

20 (b) CREDIT ALLOWED FOR CONTRIBUTIONS TO

21 ROTH IRAS FOR CHILDREN.— 

22 (1) IN GENERAL.—Paragraph (1) of section 

23 25B(d) of such Code (defining qualified retirement 

24 savings contributions) is amended by striking ‘‘and’’ 

25 at the end of subparagraph (B), by striking the peVerDate Aug 31 2005 02:21 May 05, 2007 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H2163.IH H2163

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1 riod at the end of subparagraph (C) and inserting 

2 ‘‘, and’’, and by inserting after subparagraph (C) 

3 the following new subparagraph: 

4 ‘‘(D) the amount of contributions made by 

5 the eligible individual to all Roth IRAs for chil6 dren under section 408A(g).’’. 

7 (2) LIMITATION.—Paragraph (1) of section 

8 25B(d) of such Code (defining qualified retirement 

9 savings contributions) is amended by adding at the 

10 end the following flush sentence: ‘‘The amount taken 

11 into account under subparagraph (D) shall not ex12 ceed the aggregate amount of contributions allowed 

13 to all Roth IRAs of such eligible individual under 

14 section 408A(g).’’. 

15 (c) EFFECTIVE DATE.—The amendments made by 

16 this section shall apply to taxable years beginning after 

17 December 31, 2006. 

18 SEC. 3. ROTH IRAS FOR CHILDREN. 

19 (a) IN GENERAL.—Section 408A of the Internal Rev20 enue Code of 1986 (relating to Roth IRAs) is amended 

21 by adding at the end the following new subsection: 

22 ‘‘(g) SPECIAL RULES FOR ROTH IRAS FOR CHIL23 DREN.— 

24 ‘‘(1) GENERAL RULE.—A Roth IRA maintained 

25 for the benefit of an individual who has not attained 


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1 age 25 before the close of the taxable year shall be 

2 maintained under this section, as modified by this 

3 subsection. 

4 ‘‘(2) CONTRIBUTION LIMITS.— 

5 ‘‘(A) IN GENERAL.—For so long as a Roth 

6 IRA is subject to this subsection, contributions 

7 to such Roth IRA shall be subject to this para8 graph and not to subsection (c)(2), and sub9 section (c)(3) shall not apply. 

10 ‘‘(B) LIMIT.—The aggregate amount of 

11 contributions for any taxable year to all child 

12 Roth IRAs maintained for the benefit of an in13 dividual under this subsection shall not exceed 

14 the maximum amount allowable as a deduction 

15 under subsection (b)(1) of section 219 for such 

16 taxable year (computed without regard to sub17 sections (b)(1)(B), (d)(1), and (g) of such sec18 tion).’’. 

19 (b) ENFORCEMENT OF CONTRIBUTION LIMITS.— 

20 Paragraphs (1)(B) and (2)(B) of section 4973(f) of such 

21 Code are each amended by striking ‘‘and (c)(3)’’ and in22 serting ‘‘, (c)(3), and (g)(2)’’. 


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1 (c) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to taxable years beginning after 

3 December 31, 2006. 

Æ 


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