I
105TH CONGRESS
1ST SESSION
H. R. 446
To amend the Internal Revenue Code of 1986 to encourage savings and
investment through individual retirement accounts, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 9, 1997
Mr. THOMAS (for himself, Mr. NEAL of Massachusetts, Mr. ENSIGN, Mr. BE-
REUTER, Mr. ENGLISH
of Pennsylvania, Mr. GEJDENSON, Mr.
MCINTOSH, Mr. LIVINGSTON, Mr. EHRLICH, Mr. HERGER, Mr. MCGOV-
ERN, Mr. FROST, Mr. COOK, Mrs. EMERSON, Ms. DUNN, Mr. CRANE,
Mr. GRAHAM, Mr. GREEN, Mr. MCCRERY, Mr. SAXTON, Mr. BARRETT
of Nebraska, and Mr. BARTLETT of Maryland) 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 encourage
savings and investment through individual retirement ac-
counts, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Savings and Investment Incentive Act of 1997’’.
(b) AMENDMENT OF 1986 CODE.—Except as other-
wise expressly provided, whenever in this Act an amend-
ment or repeal is expressed in terms of an amendment
to, or repeal of, a section or other provision, the reference
shall be considered to be made to a section or other provi-
sion of the Internal Revenue Code of 1986.
TITLE I—RETIREMENT SAVINGS
INCENTIVES
Subtitle A—Restoration of IRA
Deduction
SEC. 101. RESTORATION OF IRA DEDUCTION.
(a) MODIFICATIONS OF RESTRICTIONS ON ACTIVE
PARTICIPANTS.—
(1) INCREASE IN INCOME LIMITS APPLICABLE
TO
ACTIVE
PARTICIPANTS.—Subparagraph (B) of
section 219(g)(3) (relating to applicable dollar
amount) is amended to read as follows:
‘‘(B) APPLICABLE DOLLAR AMOUNT.—The
term ‘applicable dollar amount’ means the
following:
‘‘(i) In the case of a taxpayer filing a
joint return:
The applicable
‘‘For taxable years beginning in:
dollar amount is:
1997 .........................................................................................
$65,000
1998 .........................................................................................
$90,000
1999 .........................................................................................
$115,000
2000 .........................................................................................
$140,000.
‘‘(ii) In the case of any other taxpayer
(other than a married individual filing a
separate return):
The applicable
‘‘For taxable years beginning in:
dollar amount is:
1997 .........................................................................................
$50,000
1998 .........................................................................................
$75,000
1999 .........................................................................................
$100,000
2000 .........................................................................................
$125,000.
‘‘(iii) In the case of a married individ-
ual filing a separate return, zero.’’.
(2) LIMITATIONS FOR ACTIVE PARTICIPATION
NOT
BASED
ON
SPOUSE’S
PARTICIPATION.—Para-
graph (1) of section 219(g) (relating to limitation on
deduction for active participants in certain pension
plans) is amended by striking ‘‘or the individual’s
spouse’’.
(b) 
REPEAL
OF
RESTRICTIONS
ON
ACTIVE
PARTICIPANTS.—
(1) IN GENERAL.—Section 219 (relating to de-
duction for retirement savings), as amended by sec-
tion 102, is amended by striking subsection (g) and
by redesignating subsections (h) and (i) as sub-
section (g) and (h), respectively.
(2) TECHNICAL
AND
CONFORMING
AMEND-
MENTS.—
(A) Subsection (f) of section 219 is amend-
ed by striking paragraph (7).
(B) Paragraph (5) of section 408(d) is
amended by striking the last sentence.
(C) Section 408(o) is amended by adding
at the end the following new paragraph:
‘‘(5) TERMINATION.—This subsection shall not
apply to any designated nondeductible contribution
for any taxable year beginning after December 31,
2000.’’.
(D) 
Sections 
408A(c)(2)(A) 
and
4973(b)(2)(B)(ii), as added by section 111, are
each amended by striking ‘‘(computed without
regard to subsection (g) of such section)’’.
(c) EFFECTIVE DATES.—
(1) IN GENERAL.—The amendments made by
subsection (a) shall apply to taxable years beginning
after December 31, 1996.
(2) TERMINATION.—The amendments made by
subsection (b) shall apply to taxable years beginning
after December 31, 2000.
SEC. 102. INFLATION ADJUSTMENT FOR DEDUCTIBLE
AMOUNT.
(a) IN GENERAL.—Section 219 is amended by redes-
ignating subsection (h) as subsection (i) and by inserting
after subsection (g) the following new subsection: