I

106TH CONGRESS

1ST SESSION H. R. 226

To amend the Internal Revenue Code of 1986 to allow certain individuals

a credit against income tax for contributions to individual retirement accounts.

IN THE HOUSE OF REPRESENTATIVES

JANUARY 6, 1999

Mr. POMEROY 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 allow certain individuals a credit against income tax for contributions to individual retirement accounts.

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 ‘‘Family Retirement

5 Savings Act of 1999’’.

6 SEC. 2. CREDIT FOR CONTRIBUTIONS BY CERTAIN INDIVID7 UALS TO INDIVIDUAL RETIREMENT AC8 COUNTS.

9 (a) IN GENERAL.—Subpart A of part IV of sub10 chapter A of chapter 1 of the Internal Revenue Code of
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1 1986 (relating to nonrefundable personal credits) is

2 amended by inserting after section 25A the following new

3 section:

4 ‘‘SEC. 25B. RETIREMENT SAVINGS.

5 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in6 dividual, there shall be allowed as a credit against the tax

7 imposed by this chapter for the taxable year an amount

8 equal to 50 percent of the amount which would (but for

9 subsection (c)) be allowed as a deduction under section

10 219 for such taxable year.

11 ‘‘(b) LIMITATION BASED ON ADJUSTED GROSS

12 INCOME.—

13 ‘‘(1) IN GENERAL.—The amount of the credit

14 which would (but for this subsection) be allowed

15 under subsection (a) for the taxable year shall be re16 duced (but not below zero) by an amount which

17 bears the same ratio to such amount of credit as—

18 ‘‘(A) the excess of—

19 ‘‘(i) the taxpayer’s adjusted gross in20 come for such taxable year, over

21 ‘‘(ii) the applicable dollar amount,

22 bears to

23 ‘‘(B) $10,000.
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1 ‘‘(2) ROUNDING.—Any amount determined

2 under this subsection which is not a multiple of $10

3 shall be rounded to the next lowest $10.

4 ‘‘(3) APPLICABLE DOLLAR AMOUNT.—For pur5 poses of this subsection, the term ‘applicable dollar

6 amount’ means—

7 ‘‘(A) in the case of a taxpayer filing a joint

8 return, $45,000,

9 ‘‘(B) in the case of any other taxpayer

10 (other than a married individual filing a sepa11 rate return), $25,000, and

12 ‘‘(C) in the case of a married individual fil13 ing a separate return, zero.

14 The rule of section 219(g)(4) shall apply for pur15 poses of this paragraph.

16 ‘‘(c) COORDINATION WITH DEDUCTION.—No deduc17 tion shall be allowed under section 219 for amount paid

18 by or on behalf of an individual for any taxable year if

19 any such amount (with respect to such individual) is taken

20 into account in determining the credit under this section

21 for such year.’’.

22 (b) CLERICAL AMENDMENT.—The table of sections

23 for such subpart A is amended by inserting after the item

24 relating to section 25A the following new item:

‘‘Sec. 25B. Retirement savings.’’
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1 (c) EFFECTIVE DATE.—The amendments made by

2 this section shall apply to taxable years beginning after

3 the date of the enactment of this Act.

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