I 
108TH CONGRESS 
1ST SESSION 
H. R. 686
To amend the Internal Revenue Code of 1986 to accelerate the scheduled 
increases in eligibility for individual retirement plans and to eliminate 
the marriage penalty in determining such eligibility. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 11, 2003
Mr. GALLEGLY 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 scheduled increases in eligibility for individual retire-
ment plans and to eliminate the marriage penalty in 
determining such eligibility.
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 ‘‘Marriage IRA Fairness 
Act of 2003’’.
SEC. 2. ACCELERATION OF SCHEDULED INCREASES IN ELI-
GIBILITY 
FOR 
INDIVIDUAL 
RETIREMENT 
PLANS; ELIMINATION OF MARRIAGE PEN-
ALTY IN ELIGIBILITY. 
(a) 
DEDUCTIBLE
INDIVIDUAL
RETIREMENT 
PLANS.—
(1) INCREASE IN PHASEOUT THRESHOLDS.—
(A) IN GENERAL.—Subclause (II) of sec-
tion 219(g)(2)(A)(i) of the Internal Revenue 
Code of 1986 is amended to read as follows: 
‘‘(II) 
$50,000 
(twice 
such 
amount in the case of a joint return), 
bears to’’. 
(B) 
CONFORMING
AMENDMENT.—Sub-
section (g) of section 219 of such Code is 
amended by striking paragraphs (3) and (4) 
and by inserting after paragraph (2) the fol-
lowing new paragraphs: 
‘‘(3) ADJUSTED GROSS INCOME.—For purposes 
of this subsection, adjusted gross income of any tax-
payer shall be determined—
‘‘(A) after application of sections 86 and 
469, and 
‘‘(B) without regard to sections 135, 137, 
221, 222, and 911 or the deduction allowable 
under this section.
‘‘(4) COST-OF-LIVING
ADJUSTMENT.—In the 
case of any taxable year beginning in a calendar 
year after 2003, the $50,000 amount under para-
graph (2)(A)(i)(II) shall 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 the calendar 
year in which the taxable year begins, deter-
mined by substituting ‘calendar year 2002’ for 
‘calendar year 1992’ in subparagraph (B) 
thereof. 
If any amount after adjustment under the preceding 
sentence is not a multiple of $500, such amount 
shall be rounded to the nearest multiple of $500.’’. 
(2) INCREASE ON PHASEOUT RANGE.—Clause 
(ii) of section 219(g)(2)(A) of such Code is amended 
by striking ‘‘for a taxable year beginning after De-
cember 31, 2006’’. 
(b) ROTH IRA’S.—
(1) IN
GENERAL.—Clause (ii) of section 
408A(c)(3)(C) of such Code is amended—
(A) by striking ‘‘$150,000,’’ in subclause 
(I) and inserting ‘‘twice the amount under sub-
clause (II), and’’,
(B) by striking ‘‘(other than a married in-
dividual filing a separate return), $95,000, 
and’’ in subclause (II) and inserting ‘‘, 
$95,000.’’, and 
(C) by striking subclause (III). 
(2) COST-OF-LIVING ADJUSTMENT.—Paragraph 
(3) of section 408A(c) of such Code is amended by 
adding at the end the following new subparagraph: 
‘‘(E) COST-OF-LIVING
ADJUSTMENT.—In 
the case of any taxable year beginning in a cal-
endar year after 2003, the $95,000 amount 
under subparagraph (C)(ii)(II) shall be in-
creased by an amount equal to—
‘‘(i) such dollar amount, multiplied by 
‘‘(ii) the cost-of-living adjustment de-
termined under section 1(f )(3) for the cal-
endar year in which the taxable year be-
gins, determined by substituting ‘calendar 
year 2002’ for ‘calendar year 1992’ in sub-
paragraph (B) thereof. 
If any amount after adjustment under the pre-
ceding sentence is not a multiple of $500, such 
amount shall be rounded to the nearest multiple 
of $500.’’.
(c) ELIMINATION OF MARRIAGE PENALTY ON IRA 
DEDUCTION
FOR
ACTIVE
PENSION
PLAN
PARTICI-
PANTS.—Section 219(g) of such Code is amended—
(1) by striking ‘‘or the individual’s spouse’’ in 
paragraph (1), and 
(2) by striking paragraph (7). 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2002.
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