I
107TH CONGRESS
1ST SESSION
H. R. 1026
To amend the Internal Revenue Code of 1986 to increase the annual limita-
tion on deductible contributions to individual retirement accounts to
$5,000, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MARCH 14, 2001
Mr. MOORE (for himself, Mr. ABERCROMBIE, Mr. BAIRD, Mr. BALDACCI, Mrs.
BONO, Mr. BOSWELL, Mr. CALVERT, Mr. CAPUANO, Mr. CLEMENT, Mr.
CONDIT, Mr. CRAMER, Ms. DELAURO, Mr. DOOLEY of California, Mr.
FROST, Mr. GREEN of Texas, Mr. HILL, Mr. HINCHEY, Mr. HOLT, Mr.
HONDA, Ms. HOOLEY of Oregon, Mr. HYDE, Mr. ISRAEL, Ms. JACKSON-
LEE of Texas, Mr. KILDEE, Mr. LARSEN of Washington, Mr. LARSON
of Connecticut, Mr. LEWIS of Georgia, Mrs. LOWEY, Mr. LUCAS of Ken-
tucky, Mrs. MCCARTHY of New York, Ms. MCKINNEY, Mr. MORAN of
Virginia, Mrs. NAPOLITANO, Mr. PASCRELL, Mr. PETERSON of Min-
nesota, Mr. ROHRABACHER, Mr. RUSH, Mr. SANDLIN, Mr. SISISKY, Mr.
SKELTON, Mr. TANCREDO, Mrs. TAUSCHER, Mr. THOMPSON of Cali-
fornia, Mrs. JONES of Ohio, Mr. TURNER, Mr. WU, Mr. WYNN, and Mr.
UDALL of New Mexico) 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 increase
the annual limitation on deductible contributions to indi-
vidual retirement accounts to $5,000, and for other pur-
poses.
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 ‘‘Increased Individual
Retirement Accounts for All Act of 2001’’.
SEC. 2. INCREASE IN AMOUNT OF MAXIMUM CONTRIBU-
TIONS ALLOWABLE TO DEDUCTIBLE, TRADI-
TIONAL, AND ROTH IRAS.
(a) IN GENERAL.—Subparagraph (A) of section
219(b)(1) of the Internal Revenue Code of 1986 (relating
to maximum amount of deduction) is amended by striking
‘‘$2,000’’ and inserting ‘‘$5,000’’.
(b) CATCH-UP CONTRIBUTIONS FOR INDIVIDUALS 50
OR OLDER.—Subsection (b) of section 219 of such Code
is amended by adding at the end the following new para-
graph:
‘‘(5) CATCH-UP CONTRIBUTIONS FOR INDIVID-
UALS 50 OR OLDER.—In the case of an individual
who has attained the age of 50 before the close of
the taxable year, paragraph (1)(A) shall be applied
by substituting ‘$7,500’ for the dollar amount in ef-
fect under such paragraph. This paragraph shall not
apply for any taxable year in which the dollar
amount in effect under paragraph (1)(A) is equal to
or greater than $7,500.’’.
(c) COST-OF-LIVING ADJUSTMENT.—Subsection (b)
of section 219 of such Code is amended by adding at the
end the following new paragraph:
‘‘(6) COST-OF-LIVING ADJUSTMENT.—
‘‘(A) IN
GENERAL.—In the case of any
taxable year beginning in a calendar year after
2001, the $5,000 amount under paragraph (1)
shall be increased 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 2000’ for ‘calendar year 1992’ in sub-
paragraph (B) thereof.
‘‘(ii) 
ROUNDING
RULES.—If 
any
amount after adjustment under clause (i)
is not a multiple of $500, such amount
shall be rounded to the next higher mul-
tiple of $500.’’.
(d) CONFORMING AMENDMENTS.—
(1) Section 408(a)(1) of such Code is amended
by striking ‘‘in excess of $2,000 on behalf of any in-
dividual’’ 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) of such Code is
amended by striking ‘‘$2,000’’ and inserting ‘‘the
dollar amount in effect under section 219(b)(1)(A)’’.
(3) Section 408(b) of such Code is amended by
striking ‘‘$2,000’’ in the matter following paragraph
(4) and inserting ‘‘the dollar amount in effect under
section 219(b)(1)(A)’’.
(4) Section 408(j) of such Code is amended by
striking ‘‘$2,000’’.
(5) Section 408(p)(8) of such Code is amended
by striking ‘‘$2,000’’ and inserting ‘‘the dollar
amount in effect under section 219(b)(1)(A)’’.
(e) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 2000.
SEC. 3. NONREFUNDABLE CREDIT TO CERTAIN INDIVID-
UALS FOR ELECTIVE DEFERRALS AND IRA
CONTRIBUTIONS.
(a) IN GENERAL.—Subpart A of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of
1986 (relating to nonrefundable credits) is amended by
inserting after section 25A the following new section:
‘‘SEC. 25B. ELECTIVE DEFERRALS AND IRA CONTRIBU-
TIONS BY CERTAIN INDIVIDUALS.
‘‘(a) ALLOWANCE OF CREDIT.—
‘‘(1) IN GENERAL.—In the case of an eligible
individual, there shall be allowed as a credit against
the tax imposed by this subtitle for the taxable year
an amount equal to the applicable percentage of so
much of the qualified retirement savings contribu-
tions of the eligible individual for the taxable year as
do not exceed the dollar amount in effect for such
taxable year under section 219(b)(1)(A).
‘‘(2) REDUCTION FOR RECEIPT OF CERTAIN RE-
TIREMENT DISTRIBUTIONS.—
‘‘(A) IN GENERAL.—The amount allowed
as a credit under paragraph (1) shall be re-
duced (but not below zero) by the amount the
eligible individual received, with respect to the
taxable year, during the testing period in—
‘‘(i) any distribution from a qualified
retirement plan (as defined in section
4974(c)), or from an eligible deferred com-
pensation plan (as defined in section
457(b)), which is includible in gross in-
come, or
‘‘(ii) any distribution from a Roth
IRA which is not a qualified rollover con-
tribution (as defined in section 408A(e)) to
a Roth IRA.
‘‘(B) TESTING PERIOD.—For purposes of
subparagraph (A), the testing period, with re-
spect to a taxable year, is the period which
includes—
‘‘(i) such taxable year,
‘‘(ii) the 2 preceding taxable years,
and
‘‘(iii) the period after such taxable
year and before the due date (without ex-
tensions) for filing the return of tax for
such taxable year.
‘‘(b) APPLICABLE PERCENTAGE.—For purposes of
this section, the applicable percentage is the percentage
determined in accordance with the following table:
Adjusted Gross Income
Applica-
ble per-
centage
Joint return
Head of a household
All other cases
Over
Not over
Over
Not over
Over
Not over
$0
$20,000
$0
$15,000
$0
$10,000
20,000
25,000
15,000
18,750
10,000
12,500
25,000
30,000
18,750
22,500
12,500
15,000
30,000
35,000
22,500
26,250
15,000
17,500
35,000
40,000
26,250
30,000
17,500
20,000
40,000
45,000
30,000
33,750
20,000
22,500
45,000
50,000
33,750
37,500
22,500
25,000
50,000
37,500
25,000
‘‘(c) ELIGIBLE INDIVIDUAL.—For purposes of this
section—
‘‘(1) IN
GENERAL.—The term ‘eligible indi-
vidual’ means any individual if—