I
107TH CONGRESS
2D SESSION
H. R. 5558
To amend the Internal Revenue Code of 1986 to accelerate the increases
in contribution limits to retirement plans and to increase the required
beginning date for distributions from qualified plans.
IN THE HOUSE OF REPRESENTATIVES
OCTOBER 7, 2002
Mr. THOMAS 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 increases in contribution limits to retirement plans
and to increase the required beginning date for distribu-
tions from qualified plans.
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 ‘‘Retirement Savings
and Security Act of 2002’’.
SEC. 2. ACCELERATION OF INCREASES IN IRA CONTRIBU-
TION LIMIT.
(a) DEDUCTIBLE AMOUNT.—Subparagraph (A) of
section 219(b)(5) of the Internal Revenue Code of 1986
is amended to read as follows:
‘‘(A) 
IN
GENERAL.—The 
deductible
amount shall be $5,000.’’.
(b) CATCH-UP AMOUNT.—Subparagraph (B) of sec-
tion 219(b)(5) of such Code is amended to read as follows:
‘‘(B) CATCH-UP CONTRIBUTIONS FOR INDI-
VIDUALS 50 OR OLDER.—In the case of an indi-
vidual who has attained the age of 50 before
the close of the taxable year, the dollar amount
in effect under paragraph (1)(A) for such tax-
able year (determined without regard to this
paragraph) shall be increased by $1,000.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 2002.
SEC. 3. ACCELERATION OF SCHEDULED INCREASES IN
PENSION PLAN CONTRIBUTION LIMITS.
(a) ELECTIVE DEFERRALS.—Subparagraph (B) of
section 402(g)(1) of the Internal Revenue Code of 1986
is amended by striking ‘‘the amount determined’’ and all
that follows and inserting ‘‘$15,000.’’.
(b) DEFERRED COMPENSATION PLANS OF STATE
AND LOCAL GOVERNMENTS AND TAX-EXEMPT ORGANI-
ZATIONS.—Subparagraph (A) of section 457(e)(15) of
such Code is amended by striking ‘‘the amount deter-
mined’’ and all that follows and inserting ‘‘$15,000.’’.
(c) SIMPLE RETIREMENT ACCOUNTS.—Clause (i) of
section 408(p)(2)(E) of such Code is amended by striking
‘‘the amount determined’’ and all that follows and insert-
ing ‘‘$10,000.’’.
(d) CATCH-UP CONTRIBUTIONS.—Subparagraph (B)
of section 414(v)(2)(B) of such Code is amended—
(1) in clause (i) by striking ‘‘determined’’ and
all that follows and inserting ‘‘$5,000.’’, and
(2) in clause (ii) by striking ‘‘determined’’ and
all that follows and inserting ‘‘$2,500.’’.
(e) EFFECTIVE DATE.—The amendments made by
this section shall apply to years beginning after December
31, 2002.
SEC. 4. SIMPLIFICATION AND UPDATING OF THE MINIMUM
DISTRIBUTION RULES.
(a) REQUIRED DISTRIBUTIONS.—
(1) INCREASE IN AGE FOR REQUIRED BEGIN-
NING DATE.—Subparagraphs (C)(i)(I) and (C)(ii)(I)
of section 401(a)(9) of the Internal Revenue Code of
1986 are each amended by striking ‘‘701⁄2’’ and in-
serting ‘‘applicable age’’.
(2) APPLICABLE
AGE.—Subparagraph (C) of
section 401(a)(9) of such Code is amended by insert-
ing at the end the following new clause:
‘‘(v) APPLICABLE AGE.—The applica-
ble age shall be determined in accordance
with the following table:
‘‘Calendar year:
Applicable age is:
2003 and 2004 ...................................................................
2005 and 2006 ...................................................................
2007 and thereafter ............................................................
75’’.
(3) ACTUARIAL
ADJUSTMENT
OF
BENEFIT
UNDER
DEFINED
BENEFIT
PLAN.—Clause (iii) of
section 401(a)(9)(C) of such Code is amended to
read as follows:
‘‘(iii) ACTUARIAL ADJUSTMENT.—
‘‘(I) IN GENERAL.—In the case
of a defined benefit plan, an employ-
ee’s accrued benefit shall be actuari-
ally increased to take into account the
period after the applicable date during
which the employee was not eligible to
receive any benefits under the plan.
‘‘(II) APPLICABLE
DATE.—For
purposes of clause (I), the term ‘appli-
cable date’ means the April 1st fol-
lowing the calendar year in which the
employee attains age 701⁄2.’’.
(b) EFFECTIVE DATE.—
(1) IN GENERAL.—The amendments made by
this section shall apply to years beginning after De-
cember 31, 2002.
(2) TRANSITION.—A plan shall not be treated
as failing to meet the requirements of section
401(a)(9) of the Internal Revenue Code of 1986
merely because, in years beginning after December
31, 2002, no distribution is made to an employee be-
fore the employee’s required beginning date, as de-
termined in accordance with the amendments made
by this section.
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