‘‘(4) TREATMENT
OF
MATCHING
CONTRIBU-
TIONS.—In the case of an amount paid under para-
graph (2) into a designated retirement account— 
‘‘(A) any dollar limitation otherwise appli-
cable to the amount of contributions or defer-
rals to such account shall be increased by the 
amount so paid, 
‘‘(B) the individual’s basis in such account 
shall not be increased by reason of the amount 
so paid, and 
‘‘(C) such amount shall be treated as an 
employer contribution for purposes of— 
‘‘(i) section 401(k)(3), and 
‘‘(ii) section 408(k)(6)(A)(iii).’’. 
(3) CONFORMING AMENDMENTS.— 
(A) Sections 24(b)(3)(B), 25(e)(1)(C), 
26(a)(1), and 1400C(d) of such Code are each 
amended by striking ‘‘25B,’’. 
(B) The last sentence of section 25A(i)(5) 
of such Code is amended by striking ‘‘25B’’ and 
inserting ‘‘36B’’. 
(C) Sections 904(i) of such Code is amend-
ed by striking ‘‘23, 24, and 25B,’’ and inserting 
‘‘23 and 24’’. 
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(D) Section 6211(b)(4)(A) of such Code is 
amended by inserting ‘‘36B,’’ after ‘‘36A,’’. 
(E) The table of sections for subpart A of 
part IV of subchapter A of chapter 1 of such 
Code is amended by striking the item relating 
to section 25B. 
(F) The table of sections for subpart C of 
such part is amended by adding at the end the 
following new item: 
‘‘Sec. 36B. Elective deferrals and IRA contributions by certain individuals.’’. 
(G) Section 1324(b)(2) of title 31, United 
States Code, is amended by inserting ‘‘36B,’’ 
after ‘‘36A,’’. 
(c) MAXIMUM CONTRIBUTIONS.— 
(1) Subsection (a) of section 36B of such Code, 
as redesignated by subsection (b), is amended to 
read as follows: 
‘‘(a) ALLOWANCE OF CREDIT.— 
‘‘(1) IN GENERAL.—In the case of an eligible 
individual, there shall be allowed as a credit against 
the tax imposed by this subtitle for the taxable year 
an amount equal to the applicable percentage of so 
much of the qualified retirement savings contribu-
tions of the eligible individual for the taxable year as 
do not exceed the contribution limit. 
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‘‘(2) CONTRIBUTION LIMIT.—For purposes of 
paragraph (1)— 
‘‘(A) IN GENERAL.—Except as otherwise 
provided in this paragraph, the contribution 
limit is $500 ($1,500 for taxable years begin-
ning after 2020). 
‘‘(B) ANNUAL
INCREASES
TO
REACH 
$1,500.—In the case of taxable years beginning 
in a calendar year after 2010 and before 2021, 
the contribution limit shall be the sum of— 
‘‘(i) the contribution limit for taxable 
years beginning in the preceding calendar 
year (as increased under this subpara-
graph), and 
‘‘(ii) $100. 
‘‘(C) INFLATION
ADJUSTMENT.—In the 
case of any taxable year beginning in a calendar 
year after 2020, the $1,500 amount in subpara-
graph (A) shall be increased by an amount 
equal to— 
‘‘(i) such dollar amount, multiplied by 
‘‘(ii) the cost-of-living adjustment de-
termined under section 1(f)(3) for the cal-
endar year in which the taxable year be-
gins, determined by substituting ‘calendar 
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year 2019’ for ‘calendar year 1992’ in sub-
paragraph (B) thereof. 
Any increase determined under the preceding 
sentence shall be rounded to the nearest mul-
tiple of $50.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2009. 
Æ 
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