II 

114TH CONGRESS 

2D SESSION S. 3496 

To amend the Internal Revenue Code of 1986 to allow members of the 

Ready Reserve of a reserve component of the Armed Forces to make 

elective deferrals on the basis of their service to the Ready Reserve 

and on the basis of their other employment. 

IN THE SENATE OF THE UNITED STATES 

DECEMBER 5, 2016 

Mr. CORNYN (for himself and Mr. CASEY) introduced the following bill; which 

was read twice and referred to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to allow members of the Ready Reserve of a reserve component of 

the Armed Forces to make elective deferrals on the basis 

of their service to the Ready Reserve and on the basis 

of their other employment. 

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 ‘‘Servicemember Retire5 ment Improvement Act’’. 


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•S 3496 IS

1 SEC. 2. ELECTIVE DEFERRALS BY MEMBERS OF THE READY 

2 RESERVE OF A RESERVE COMPONENT OF 

3 THE ARMED FORCES. 

4 (a) IN GENERAL.—Section 402(g) of the Internal 

5 Revenue Code of 1986 is amended by adding at the end 

6 the following new paragraph: 

7 ‘‘(9) ELECTIVE DEFERRALS BY MEMBERS OF

8 READY RESERVE.— 

9 ‘‘(A) IN GENERAL.—In the case of a quali10 fied ready reservist (other than a specified Fed11 eral employee ready reservist) for any taxable 

12 year, the limitations of subparagraphs (A) and 

13 (C) of paragraph (1) shall be applied separately 

14 with respect to— 

15 ‘‘(i) elective deferrals of such qualified 

16 ready reservist with respect to the Thrift 

17 Savings Fund (as defined in section 

18 7701(j)), and 

19 ‘‘(ii) any other elective deferrals of 

20 such qualified ready reservist. 

21 ‘‘(B) SPECIAL RULE FOR FEDERAL EM22 PLOYEES IN THE READY RESERVE NOT ELIGI23 BLE TO MAKE ELECTIVE DEFERRALS TO A

24 PLAN OTHER THAN THE THRIFT SAVINGS

25 PLAN.—In the case of a specified Federal em26 ployee ready reservist for any taxable year— 


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•S 3496 IS

1 ‘‘(i) the applicable dollar amount in 

2 effect under paragraph (1)(B) for such 

3 taxable year shall be twice such amount 

4 (as determined without regard to this sub5 clause), and 

6 ‘‘(ii) for purposes of paragraph 

7 (1)(C), the applicable dollar amount under 

8 section 414(v)(2)(B)(i) (as otherwise deter9 mined for purposes of paragraph (1)(C)) 

10 shall be twice such amount (as determined 

11 without regard to this subclause). 

12 ‘‘(C) DEFINITIONS.—For purposes of this 

13 paragraph— 

14 ‘‘(i) QUALIFIED READY RESERVIST.— 

15 The term ‘qualified ready reservist’ means 

16 any individual for any taxable year if such 

17 individual received compensation for serv18 ice as a member of the Ready Reserve of 

19 a reserve component (as defined in section 

20 101 of title 37, United States Code) dur21 ing such taxable year. 

22 ‘‘(ii) SPECIFIED FEDERAL EMPLOYEE

23 READY RESERVIST.—The term ‘specified 

24 Federal employee ready reservist’ means 


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•S 3496 IS

1 any individual for any taxable year if such 

2 individual— 

3 ‘‘(I) is a qualified ready reservist 

4 for such taxable year, 

5 ‘‘(II) would be eligible to make 

6 elective deferrals with respect to the 

7 Thrift Savings Fund (as defined in 

8 section 7701(j)) during such taxable 

9 year determined without regard to the 

10 service of such individual described in 

11 clause (i), and 

12 ‘‘(III) is not eligible to make elec13 tive deferrals with respect to any plan 

14 other than such Thrift Savings Fund 

15 during such taxable year.’’. 

16 (b) EFFECTIVE DATE.—The amendment made by 

17 this section shall apply to taxable years beginning after 

18 the date of the enactment of this Act. 

Æ 


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