‘‘(A) such individual has attained the age
of 18 as of the close of the taxable year, and
‘‘(B) the compensation (as defined in sec-
tion 219(f)(1)) includible in the gross income of
the individual (or, in the case of a joint return,
of the taxpayer) for such taxable year is at least
$5,000.
‘‘(2) DEPENDENTS AND FULL-TIME STUDENTS
NOT ELIGIBLE.—The term ‘eligible individual’ shall
not include—
‘‘(A) any individual with respect to whom
a deduction under section 151 is allowable to
another taxpayer for a taxable year beginning
in the calendar year in which such individual’s
taxable year begins, and
‘‘(B) any individual who is a student (as
defined in section 151(c)(4)).
‘‘(d) QUALIFIED RETIREMENT SAVINGS CONTRIBU-
TIONS.—For purposes of this section, the term ‘qualified
retirement savings contributions’ means the sum of—
‘‘(1) the amount of the qualified retirement
contributions (as defined in section 219(e)) for the
benefit of the eligible individual,
‘‘(2) the amount of the elective deferrals (as de-
fined in section 414(u)(2)(C)) of such individual,
and
‘‘(3) the amount of voluntary employee con-
tributions by such individual to any qualified retire-
ment plan (as defined in section 4974(c)).
‘‘(e) SPECIAL RULES.—
‘‘(1) TREATMENT OF DISTRIBUTIONS RECEIVED
BY SPOUSE OF INDIVIDUAL.—For purposes of deter-
mining whether an individual is an eligible individual
for any taxable year and for the reduction under
subsection (a)(2), any distribution received by the
spouse of such individual shall be treated as received
by such individual if such individual and spouse file
a joint return for such taxable year and for the tax-
able year during which the spouse receives the dis-
tribution.
‘‘(2) ADJUSTED GROSS INCOME.—For purposes
of this section, adjusted gross income shall be deter-
mined without regard to sections 911, 931, and 933.
‘‘(3) INVESTMENT
IN
THE
CONTRACT.—Not-
withstanding any other provision of law, a qualified
retirement savings contribution shall not fail to be
included in determining the investment in the con-
tract for purposes of section 72 by reason of the
credit under this section.
‘‘(f) TERMINATION.—This section shall not apply to
taxable years beginning after December 31, 2005.’’.
(b) CONFORMING AMENDMENT.—The table of sec-
tions for subpart A of part IV of subchapter A of chapter
1 of the Internal Revenue Code of 1986 is amended by
inserting after the item relating to section 25A the fol-
lowing new item:
‘‘Sec. 25B. Elective deferrals and IRA contributions by certain in-
dividuals.’’.
(c) REPORTING REQUIREMENTS.—
(1) ANNUAL
REPORT
REQUIRED.—The Sec-
retary of the Treasury shall submit an annual report
to the Committee on Ways and Means of the House
of Representatives and the Committee on Finance of
the Senate regarding the number of individuals who
claim the credit under section 25B of the Internal
Revenue Code of 1986 (as added by this section).
(2) EFFECT
OF
CREDIT
ON
PENSION
COV-
ERAGE.—Not later than 4 years after the date of the
enactment of this Act, the Secretary of the Treasury
shall submit a report to the committees specified in
paragraph (1) on the effect of the credit under sec-
tion 25B of the Internal Revenue Code of 1986 (as
added by this section) on pension coverage of indi-
viduals in the workforce, including expansion of cov-
erage for low- and moderate-income workers, levels
of pension benefits, quality of coverage, workers’ ac-
cess to and participation in plans, and retirement se-
curity.
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 2000.
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