I 
109TH CONGRESS 
1ST SESSION H. R. 3574 
To amend the Internal Revenue Code of 1986 to expand incentives for 
saving. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 28, 2005 
Mr. MACK (for himself, Mr. FEENEY, Mr. MILLER of Florida, Mrs. BONO, and 
Mr. FOLEY) introduced the following bill; which was referred to the Com-
mittee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to expand 
incentives for saving. 
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 ‘‘Lifetime Prosperity 
Act of 2005’’. 
SEC. 2. EXPANSION OF SAVERS CREDIT. 
(a) CREDIT EXTENDED AND MADE PERMANENT.— 
(1) PERMANENT EXTENSION OF CREDIT.—Sec-
tion 25B of the Internal Revenue Code of 1986 (re-
lating to elective deferrals and IRA contributions by
certain individuals) is amended by striking sub-
section (h). 
(2) SUNSET MADE INAPPLICABLE.—Title IX of 
the Economic Growth and Tax Relief Reconciliation 
Act of 2001 shall not apply to the amendments 
made by section 618 of such Act (relating to non-
refundable credit to certain individuals for elective 
deferrals and IRA contributions). 
(b) EXPANSION OF CREDIT.—Subsections (a) and (b) 
of section 25B of such Code are amended to read as fol-
lows: 
‘‘(a) ALLOWANCE OF CREDIT.—In the case of an eli-
gible individual, there shall be allowed as a credit against 
the tax imposed by this subtitle for the taxable year an 
amount equal to 50 percent of the qualified retirement 
savings contributions of the eligible individual for the tax-
able year. 
‘‘(b) LIMITATION.— 
‘‘(1) IN GENERAL.—The amount allowed as a 
credit under subsection (a) for a taxable year shall 
not exceed the applicable dollar limit. 
‘‘(2) APPLICABLE
DOLLAR
LIMIT.—For pur-
poses of paragraph (1)—
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), the applicable dollar limit 
is— 
‘‘(i) in the case of a joint return, 
$3,000, and 
‘‘(ii) in the case of any other return, 
50 percent of the dollar amount applicable 
for the taxable year under clause (i). 
‘‘(B) LIMITATION
BASED
ON
ADJUSTED 
GROSS
INCOME.—The applicable dollar limit 
shall be zero in the case of a taxpayer whose 
adjusted gross income for the taxable year ex-
ceeds— 
‘‘(i) $150,000 in the case of a joint 
return, and 
‘‘(ii) $95,000 in any other case. 
‘‘(3) INFLATION ADJUSTMENT.—In the case of 
any taxable year beginning after 2006, the amounts 
contained in subparagraph (A)(i) and clauses (i) and 
(ii) of subparagraph (B) of paragraph (2) shall each 
be increased by an amount equal to— 
‘‘(A) such dollar amount, multiplied by 
‘‘(B) the cost-of-living adjustment deter-
mined under section 1(f)(3) for such calendar 
year by substituting ‘calendar year 2005’ for
‘calendar year 1992’ in subparagraph (B) 
thereof. 
If any amount as adjusted under the preceding sentence 
is not a multiple of $100, such amount shall be rounded 
to the nearest multiple of $100.’’. 
(c) CREDIT
ALLOWED
FOR
CONTRIBUTIONS
TO 
ROTH IRAS FOR CHILDREN.— 
(1) IN
GENERAL.—Paragraph (1) of section 
25B(d) of such Code (defining qualified retirement 
savings contributions) is amended by striking ‘‘and’’ 
at the end of subparagraph (B), by striking the pe-
riod at the end of subparagraph (C) and inserting 
‘‘, and’’, and by inserting after subparagraph (C) 
the following new subparagraph: 
‘‘(D) the amount of contributions made by 
the eligible individual to all Roth IRAs for chil-
dren under section 408A(g).’’. 
(2) LIMITATION.—Paragraph (1) of section 
25B(d) of such Code (defining qualified retirement 
savings contributions) is amended by adding at the 
end the following flush sentence: ‘‘The amount taken 
into account under subparagraph (D) shall not ex-
ceed the aggregate amount of contributions allowed 
to all Roth IRAs of such eligible individual under 
section 408A(g).’’.
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2005. 
SEC. 3. ROTH IRAS FOR CHILDREN. 
(a) IN GENERAL.—Section 408A of the Internal Rev-
enue Code of 1986 (relating to Roth IRAs) is amended 
by adding at the end the following new subsection: 
‘‘(g) SPECIAL RULES FOR ROTH IRAS FOR CHIL-
DREN.— 
‘‘(1) GENERAL RULE.—A Roth IRA maintained 
for the benefit of an individual who has not attained 
age 25 before the close of the taxable year shall be 
maintained under this section, as modified by this 
subsection. 
‘‘(2) CONTRIBUTION LIMITS.— 
‘‘(A) IN GENERAL.—For so long as a Roth 
IRA is subject to this subsection, contributions 
to such Roth IRA shall be subject to this para-
graph and not to subsection (c)(2), and sub-
section (c)(3) shall not apply. 
‘‘(B) LIMIT.—The aggregate amount of 
contributions for any taxable year to all child 
Roth IRAs maintained for the benefit of an in-
dividual under this subsection shall not exceed 
the maximum amount allowable as a deduction
under subsection (b)(1) of section 219 for such 
taxable year (computed without regard to sub-
sections (b)(1)(B), (d)(1), and (g) of such sec-
tion).’’. 
(b) ENFORCEMENT
OF CONTRIBUTION LIMITS.— 
Paragraphs (1)(B) and (2)(B) of section 4973(f) of such 
Code are each amended by striking ‘‘and (c)(3)’’ and in-
serting ‘‘, (c)(3), and (f)(2)’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2005. 
Æ