I
107TH CONGRESS
1ST SESSION
H. R. 12
To amend the Internal Revenue Code of 1986 to increase the limitation
on contributions to individual retirement accounts.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 3, 2001
Mr. GALLEGLY (for himself, Mr. FOLEY, Mr. HERGER, and Mr. HAYWORTH)
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 limitation on contributions to individual retirement
accounts.
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 ‘‘IRA Fairness Act of
2001’’.
SEC. 2. MODIFICATION OF IRA CONTRIBUTION LIMITS.
(a) INCREASE IN CONTRIBUTION LIMIT.—
(1) IN GENERAL.—Paragraph (1)(A) of section
219(b) of the Internal Revenue Code of 1986 (relat-
ing to maximum amount of deduction) is amended
by striking ‘‘$2,000’’ and inserting ‘‘the deductible
amount’’.
(2) DEDUCTIBLE AMOUNT.—Section 219(b) of
such Code is amended by adding at the end the fol-
lowing new paragraph:
‘‘(5) DEDUCTIBLE AMOUNT.—For purposes of
paragraph (1)(A)—
‘‘(A) 
IN
GENERAL.—The 
deductible
amount shall be determined in accordance with
the following table:
‘‘For taxable years
The deductible
beginning in:
amount is:
2002 .............................................................................
$3,000
2003 .............................................................................
$4,000
2004 and thereafter .....................................................
$5,000.
‘‘(B) CATCH-UP CONTRIBUTIONS FOR INDI-
VIDUALS 50 OR OLDER.—In the case of an indi-
vidual who has attained the age of 50 before
the close of the taxable year, the deductible
amount for such taxable year shall be an
amount equal to 125 percent of such amount
determined without regard to this subpara-
graph.
‘‘(C) COST-OF-LIVING
ADJUSTMENT.—In
the case of any taxable year beginning in a cal-
endar year after 2004, the $5,000 amount
under subparagraph (A) 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 2003’ for ‘calendar year 1992’ in sub-
paragraph (B) thereof.
‘‘(D) ROUNDING RULES.—If the deductible
amount determined under subparagraph (B),
and if any amount after adjustment under sub-
paragraph (C), is not a multiple of $500, such
amount shall be rounded to the nearest multiple
of $500.’’.
(b) 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)’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 2001.
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