I 

108TH CONGRESS 

1ST SESSION H. R. 686

To amend the Internal Revenue Code of 1986 to accelerate the scheduled 

increases in eligibility for individual retirement plans and to eliminate 

the marriage penalty in determining such eligibility. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 11, 2003

Mr. GALLEGLY 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 accelerate 

the scheduled increases in eligibility for individual retirement plans and to eliminate the marriage penalty in 

determining such eligibility.

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 ‘‘Marriage IRA Fairness 

5 Act of 2003’’. 
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1 SEC. 2. ACCELERATION OF SCHEDULED INCREASES IN ELI2 GIBILITY FOR INDIVIDUAL RETIREMENT 

3 PLANS; ELIMINATION OF MARRIAGE PEN4 ALTY IN ELIGIBILITY. 

5 (a) DEDUCTIBLE INDIVIDUAL RETIREMENT

6 PLANS.—

7 (1) INCREASE IN PHASEOUT THRESHOLDS.—

8 (A) IN GENERAL.—Subclause (II) of sec9 tion 219(g)(2)(A)(i) of the Internal Revenue 

10 Code of 1986 is amended to read as follows: 

11 ‘‘(II) $50,000 (twice such 

12 amount in the case of a joint return), 

13 bears to’’. 

14 (B) CONFORMING AMENDMENT.—Sub15 section (g) of section 219 of such Code is 

16 amended by striking paragraphs (3) and (4) 

17 and by inserting after paragraph (2) the fol18 lowing new paragraphs: 

19 ‘‘(3) ADJUSTED GROSS INCOME.—For purposes 

20 of this subsection, adjusted gross income of any tax21 payer shall be determined—

22 ‘‘(A) after application of sections 86 and 

23 469, and 

24 ‘‘(B) without regard to sections 135, 137, 

25 221, 222, and 911 or the deduction allowable 

26 under this section. 
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1 ‘‘(4) COST-OF-LIVING ADJUSTMENT.—In the 

2 case of any taxable year beginning in a calendar 

3 year after 2003, the $50,000 amount under para4 graph (2)(A)(i)(II) shall be increased by an amount 

5 equal to—

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

7 ‘‘(B) the cost-of-living adjustment deter8 mined under section 1(f )(3) for the calendar 

9 year in which the taxable year begins, deter10 mined by substituting ‘calendar year 2002’ for 

11 ‘calendar year 1992’ in subparagraph (B) 

12 thereof. 

13 If any amount after adjustment under the preceding 

14 sentence is not a multiple of $500, such amount 

15 shall be rounded to the nearest multiple of $500.’’. 

16 (2) INCREASE ON PHASEOUT RANGE.—Clause 

17 (ii) of section 219(g)(2)(A) of such Code is amended 

18 by striking ‘‘for a taxable year beginning after De19 cember 31, 2006’’. 

20 (b) ROTH IRA’S.—

21 (1) IN GENERAL.—Clause (ii) of section 

22 408A(c)(3)(C) of such Code is amended—

23 (A) by striking ‘‘$150,000,’’ in subclause 

24 (I) and inserting ‘‘twice the amount under sub25 clause (II), and’’, 
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1 (B) by striking ‘‘(other than a married in2 dividual filing a separate return), $95,000, 

3 and’’ in subclause (II) and inserting ‘‘, 

4 $95,000.’’, and 

5 (C) by striking subclause (III). 

6 (2) COST-OF-LIVING ADJUSTMENT.—Paragraph 

7 (3) of section 408A(c) of such Code is amended by 

8 adding at the end the following new subparagraph: 

9 ‘‘(E) COST-OF-LIVING ADJUSTMENT.—In 

10 the case of any taxable year beginning in a cal11 endar year after 2003, the $95,000 amount 

12 under subparagraph (C)(ii)(II) shall be in13 creased by an amount equal to—

14 ‘‘(i) such dollar amount, multiplied by 

15 ‘‘(ii) the cost-of-living adjustment de16 termined under section 1(f )(3) for the cal17 endar year in which the taxable year be18 gins, determined by substituting ‘calendar 

19 year 2002’ for ‘calendar year 1992’ in sub20 paragraph (B) thereof. 

21 If any amount after adjustment under the pre22 ceding sentence is not a multiple of $500, such 

23 amount shall be rounded to the nearest multiple 

24 of $500.’’. 
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1 (c) ELIMINATION OF MARRIAGE PENALTY ON IRA 

2 DEDUCTION FOR ACTIVE PENSION PLAN PARTICI3 PANTS.—Section 219(g) of such Code is amended—

4 (1) by striking ‘‘or the individual’s spouse’’ in 

5 paragraph (1), and 

6 (2) by striking paragraph (7). 

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

8 this section shall apply to taxable years beginning after 

9 December 31, 2002.

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