I
106TH CONGRESS
1ST SESSION
H. R. 189
To amend the Internal Revenue Code of 1986 to provide greater equity
in savings opportunities for families with children, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 6, 1999
Mr. MCCOLLUM (for himself and Ms. DUNN) 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 provide
greater equity in savings opportunities for families with
children, 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.
This Act may be cited as the ‘‘Women’s Investment
and Savings Equity Act of 1999’’.
SEC. 2. INDIVIDUALS MAY MAKE CONTRIBUTIONS FOR PE-
RIODS OF MATERNITY OR PATERNITY LEAVE.
(a) IN GENERAL.—Section 414 of the Internal Reve-
nue Code of 1986 (relating to definitions and special
rules) is amended by adding at the end the following:
‘‘(v) RIGHT TO MAKE CONTRIBUTIONS WITH RE-
SPECT
TO PERIODS
OF MATERNITY
AND PATERNITY
LEAVE.—
‘‘(1) IN GENERAL.—For purposes of this title—
‘‘(A) a trust which forms part of a plan
shall not constitute a qualified trust under sec-
tion 401(a),
‘‘(B) a plan shall not be treated as de-
scribed in section 403(b),
‘‘(C) a plan shall not be treated as an eligi-
ble deferred compensation plan under section
457, and
‘‘(D) an arrangement shall not be treated
as meeting the requirements of section 408 (k)
or (p),
unless such plan or arrangement permits partici-
pants who were on eligible maternity or paternity
leave to make additional elective deferrals under the
plan or arrangement with respect to periods of such
leave.
‘‘(2) TREATMENT OF CONTRIBUTIONS.—
‘‘(A) IN
GENERAL.—In the case of any
contribution to a plan under paragraph (1)
(and any employer matching contribution with
respect thereto)—
‘‘(i) such contribution shall not, with
respect to the year in which the contribu-
tion is made—
‘‘(I) be subject to any otherwise
applicable limitation contained in sec-
tion 402(g), 402(h), 403(b), 404(a),
404(h), 408, 415, or 457, or
‘‘(II) be taken into account in ap-
plying such limitations to other con-
tributions or benefits under such plan
or any other such plan,
‘‘(ii) such contribution shall be subject
to the limitations referred to in clause (i)
with respect to the year to which the con-
tribution relates (in accordance with rules
prescribed by the Secretary), and
‘‘(iii) except as provided in subpara-
graph (B)(i), such plan shall not be treated
as failing to meet the requirements of sec-
tion 401(a)(4), 401(a)(26), 401(k)(3),
401(k)(11), 
401(k)(12), 
401(m),
403(b)(12), 408(k), 408(p), 410(b), or 416
by reason of the making of (or the right to
make) such contribution.
‘‘(B) MATCHING
CONTRIBUTIONS.—Noth-
ing in subparagraph (A) shall require an em-
ployer to make any matching contribution with
respect to any additional elective deferrals
under paragraph (1), but if the employer elects
to make any such matching contribution—
‘‘(i) 
the 
requirements 
of 
section
401(a)(4) shall be applied separately to all
such matching contributions made during
a year, and
‘‘(ii) the amount of any such match-
ing contribution may not exceed the maxi-
mum amount which could have been made
under the plan had the elective deferral ac-
tually been made during the period of eligi-
ble maternity and paternity leave.
‘‘(3) AMOUNT AND TIMING OF ELECTIVE DE-
FERRALS.—A plan shall not be treated as meeting
the requirements of paragraph (1) unless the plan
provides the following:
‘‘(A) AMOUNT.—The amount of any elec-
tive deferral under paragraph (1) which any
employee is permitted to make with respect to
any period of eligible maternity and paternity
leave shall not exceed the maximum amount of
the elective deferrals that the employee would
have been permitted to make during such pe-
riod in accordance with the limitation referred
to in paragraph (2)(A)(i) if the individual—
‘‘(i) had not been on eligible maternity
and paternity leave during such period,
and
‘‘(ii) had received compensation in an
amount determined under rules similar to
the rules under subsection (u)(7).
Proper adjustment shall be made to the amount
determined under the preceding sentence for
any elective deferrals actually made during such
period.
‘‘(B) TIMING.—An employee may make an
elective deferral to which paragraph (1) applies
at any time during the 3-year period beginning
on the date on which the eligible maternity or
paternity leave ends. Any matching contribution
with respect to any such elective deferral shall
be made not later than the due date (including
extensions) for the filing of the employer’s re-
turn for the taxable year in which such elective
deferral is made.
‘‘(4) ELIGIBLE
MATERNITY
AND
PATERNITY
LEAVE.—For purposes of this subsection—
‘‘(A) IN GENERAL.—The term ‘eligible ma-
ternity or paternity leave’ means any absence of
an individual from work for any period—
‘‘(i) by reason of the pregnancy of the
individual,
‘‘(ii) by reason of the birth of a child
of the individual,
‘‘(iii) by reason of the placement of a
child with the individual in connection with
the adoption of the child by the individual,
or
‘‘(iv) for purposes of caring for such
child for a period beginning immediately
following such birth or placement.
‘‘(B) LIMITATION.—Such period may not
exceed 12 months with respect to any child.
‘‘(5) OTHER
DEFINITIONS
AND
RULES.—For
purposes of this subsection—
‘‘(A) ELECTIVE
DEFERRAL.—The term
‘elective deferral’ has the meaning given such
term by subsection (u)(2)(C). Such term shall
also include any after-tax employee contribu-
tions described in subsection (u)(2)(D).
‘‘(B) PLAN.—The term ‘plan’ includes any
arrangement under section 408 (k) or (p).
‘‘(C) 
CERTAIN
RETROACTIVE
ADJUST-
MENTS NOT REQUIRED.—For purposes of this
subchapter and subchapter E, the rules of sub-
section (u)(3) shall apply.
‘‘(D) LOAN
REPAYMENT
SUSPENSIONS
PERMITTED.—In the case of any plan or ar-
rangement to which paragraph (1) applies, the
rules of subsection (u)(4) shall apply to any
loan repayment suspension during any period of
eligible maternity and paternity leave.’’
(b) EFFECTIVE DATE.—The amendment made by
this section shall apply to periods of eligible maternity and
paternity leave beginning after December 31, 1999.
SEC. 3. CATCHUP CONTRIBUTIONS FOR FAMILIES WITH
CHILDREN NOT COVERED BY A PENSION
PLAN.
(a) IN GENERAL.—Section 414 of the Internal Reve-
nue Code of 1986 (relating to definitions and special
rules), as amended by section 2, is amended by adding
at the end the following:
‘‘(w) CATCHUP
CONTRIBUTIONS
FOR
FAMILIES
WITH CHILDREN NOT COVERED BY A PENSION PLAN.—
‘‘(1) IN GENERAL.—For purposes of this title—
‘‘(A) a trust which forms part of a plan
shall not constitute a qualified trust under sec-
tion 401(a),
‘‘(B) a plan shall not be treated as de-
scribed in section 403(b),
‘‘(C) a plan shall not be treated as an eligi-
ble deferred compensation plan under section
457, and
‘‘(D) an arrangement shall not be treated
as meeting requirements of section 408 (k) or
(p),
unless such plan or arrangement permits eligible
participants to make additional elective deferrals
under the plan or arrangement in accordance with
paragraph (2).
‘‘(2) CATCHUP CONTRIBUTIONS.—
‘‘(A) IN GENERAL.—A plan shall permit an
eligible participant to make the additional elec-
tive deferrals under paragraph (1) in any year
which is certified as a catchup year by the par-
ticipant under subparagraph (E).
‘‘(B) LIMITATION ON AMOUNT OF ADDI-
TIONAL DEFERRALS.—A plan shall not permit
additional elective deferrals under paragraph