‘‘(h) COST-OF-LIVING ADJUSTMENTS.—In the case
of any taxable year beginning in a calendar year after
1997, the $2,000 amount under subsection (b)(1)(A) shall
be increased by an amount equal to the product of $2,000
and the cost-of-living adjustment determined under sec-
tion 1(f)(3) for the calendar year in which the taxable year
begins, except that subparagraph (B) thereof shall be ap-
plied by substituting ‘1996’ for ‘1992’. If the amount to
which $2,000 would be increased under the preceding sen-
tence is not a multiple of $500, such amount shall be
rounded to the next lower multiple of $500.’’
(b) CONFORMING AMENDMENTS.—
(1) Section 408(a)(1) is amended by striking
‘‘in excess of $2,000 on behalf of any individual’’
and inserting ‘‘on behalf of any individual in excess
of the amount in effect for such taxable year under
section 219(b)(1)(A)’’.
(2) Section 408(b)(2)(B) is amended by strik-
ing ‘‘$2,000’’ and inserting ‘‘the dollar amount in
effect under section 219(b)(1)(A)’’.
(3) Section 408(j) is amended by striking
‘‘$2,000’’.
SEC. 103. CERTAIN COINS AND BULLION NOT TREATED AS
COLLECTIBLES.
(a) IN GENERAL.—Paragraph (3) of section 408(m)
(relating to exception for certain coins) is amended to read
as follows:
‘‘(3) EXCEPTION FOR CERTAIN COINS AND BUL-
LION.—For purposes of this subsection, the term
‘collectible’ shall not include—
‘‘(A) any coin certified by a recognized
grading service and traded on a nationally rec-
ognized electronic network, or listed by a recog-
nized wholesale reporting service, and—
‘‘(i) which is or was at any time legal
tender in the country of issuance, or
‘‘(ii) issued under the laws of any
State, and
‘‘(B) any gold, silver, platinum, or palla-
dium bullion (whether fabricated in the form of
a coin or otherwise) of a fineness equal to or
exceeding the minimum fineness required for
metals which may be delivered in satisfaction of
a regulated futures contract subject to regula-
tion by the Commodity Futures Trading Com-
mission under the Commodity Exchange Act,
if such coin or bullion is in the physical possession
of a trustee described under subsection (a) of this
section.’’.
(b) EFFECTIVE DATE.—The amendment made by
this section shall apply to taxable years beginning after
December 31, 1996.
Subtitle B—Nondeductible Tax-
Free IRAs
SEC. 111. ESTABLISHMENT OF NONDEDUCTIBLE TAX-FREE
INDIVIDUAL RETIREMENT ACCOUNTS.
(a) IN GENERAL.—Subpart A of part I of subchapter
D of chapter 1 (relating to pension, profit-sharing, stock
bonus plans, etc.) is amended by inserting after section
408 the following new section:
‘‘SEC. 408A. IRA PLUS ACCOUNTS.
‘‘(a) GENERAL RULE.—Except as provided in this
section, an IRA Plus account shall be treated for purposes
of this title in the same manner as an individual retire-
ment plan.
‘‘(b) IRA PLUS ACCOUNT.—For purposes of this
title, the term ‘IRA Plus account’ means an individual re-
tirement plan (as defined in section 7701(a)(37)) which
is designated (in such manner as the Secretary may pre-
scribe) at the time of establishment of the plan as an IRA
Plus account.
‘‘(c) TREATMENT OF CONTRIBUTIONS.—
‘‘(1) NO DEDUCTION ALLOWED.—No deduction
shall be allowed under section 219 for a contribution
to an IRA Plus account.
‘‘(2) CONTRIBUTION
LIMIT.—The aggregate
amount of contributions for any taxable year to all
IRA Plus accounts maintained for the benefit of an
individual shall not exceed the excess (if any) of—
‘‘(A) the maximum amount allowable as a
deduction under section 219 with respect to
such individual for such taxable year (computed
without regard to subsection (g) of such sec-
tion), over
‘‘(B) the amount so allowed.
‘‘(3) CONTRIBUTIONS PERMITTED AFTER AGE
701⁄2.—Contributions to an IRA Plus account may be
made even after the individual for whom the account
is maintained has attained age 701⁄2.
‘‘(4) MANDATORY
DISTRIBUTION
RULES
NOT
TO APPLY, ETC.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), subsections (a)(6) and (b)(3)
of section 408 (relating to required distribu-
tions) and section 4974 (relating to excise tax