I
105TH CONGRESS
1ST SESSION
H. R. 1496
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
APRIL 30, 1997
Mr. MCCOLLUM (for himself, Ms. DUNN, Mrs. JOHNSON of Connecticut, Mr.
BOEHNER, Mr. KNOLLENBERG, Mr. FROST, Mr. BACHUS, Mr. EWING,
Mrs. KELLY, Mr. WALSH, Mr. SNOWBARGER, Mr. COOKSEY, Mrs.
NORTHUP, Mr. GREEN, Ms. GRANGER, Mr. RYUN, Mr. WELDON of Flor-
ida, and Mr. WHITE) 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 1997’’.
SEC. 2. INDIVIDUAL’S ELIGIBILITY FOR DEDUCTIBLE IRA
NOT 
DETERMINED 
BY 
REFERENCE 
TO
SPOUSE’S PARTICIPATION IN PENSION PLAN.
(a) IN GENERAL.—Section 219(g)(1) of the Internal
Revenue Code of 1986 (relating to limitation on deduction
for active participants in certain pension plans) is amend-
ed by striking ‘‘or the individual’s spouse’’.
(b) EFFECTIVE DATE.—The amendment made by
this section shall apply to taxable years beginning after
December 31, 1996.
SEC. 3. 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).
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, 1997.
SEC. 4. 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 3, 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
(1) for any year in an amount greater than the
lesser of—
‘‘(i) the amount of the elective defer-
rals the participant may otherwise make
under the plan for such year (determined
without regard to this subsection, sub-
section (u), or any limitation described in
subparagraph (C)(i)), or
‘‘(ii) the excess (if any) of—
‘‘(I) 120 percent of the dollar
limitation in effect under section
402(g), 
408(p), 
or 
457(b)(2)(A),
whichever is applicable, for taxable
years beginning in the calendar year
in which the plan year begins, over
‘‘(II) any other elective deferrals
of the participant for such year which
are made without regard to this sub-
section.
‘‘(C) TREATMENT OF CONTRIBUTIONS.—In
the case of any contribution to a plan under
paragraph (1) (and any employer matching con-
tribution 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, and
‘‘(ii) except as provided in subpara-
graph (D)(i), such plan shall not be treat-
ed as failing to meet the requirements of
section 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.
‘‘(D) 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) for any year, 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 terms of the plan in effect for
elective deferrals made for such year with-
out regard to this subsection.