I
104TH CONGRESS
1ST SESSION
H. R. 2365
To amend the Internal Revenue Code of 1986 to allow deductible contribu-
tions to individual retirement plans designated as Retirement Years Sav-
ings Accounts.
IN THE HOUSE OF REPRESENTATIVES
SEPTEMBER 19, 1995
Mr. TALENT 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 allow de-
ductible contributions to individual retirement plans des-
ignated as Retirement Years Savings Accounts.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. RETIREMENT YEARS SAVINGS ACCOUNTS.
(a) IN GENERAL.—Subpart A of part I of subchapter
D of chapter 1 of the Internal Revenue Code of 1986 (re-
lating to pension, profit-sharing, stock bonus plans, etc.)
is amended by inserting after section 408 the following
new section:
‘‘SEC. 408A. RETIREMENT YEARS SAVINGS ACCOUNTS.
‘‘(a) GENERAL RULE.—Except as provided in this
section, a Retirement Years Savings Account shall be
treated for purposes of this title in the same manner as
an individual retirement plan.
‘‘(b) RETIREMENT YEARS SAVINGS ACCOUNT.—For
purposes of this title, the term ‘Retirement Years Savings
Account’ or ‘RYS Account’ means an individual retire-
ment plan which is designated at the time of the establish-
ment of the plan as a Retirement Years Savings Account.
Such designation shall be made in such manner as the
Secretary may prescribe.
‘‘(c) CONTRIBUTION RULES.—
‘‘(1) DEDUCTION ALLOWED FOR YEARS BEFORE
INDIVIDUAL ATTAINS AGE 40.—Section 219(g) shall
not apply to any contribution to an RYS Account for
any taxable year before the taxable year during
which the individual attains age 40.
‘‘(2) DENIAL OF DEDUCTION FOR YEARS AFTER
INDIVIDUAL ATTAINS AGE 40.—No deduction shall
be allowed under section 219 for a contribution to
an RYS account for the taxable year in which the
individual attains age 40 or any taxable year there-
after.
‘‘(3) INCREASED SPOUSAL CONTRIBUTION.—
‘‘(A) IN GENERAL.—In the case of an indi-
vidual to whom this paragraph applies for the
taxable year, in lieu of applying section 219(c),
the limitation under section 219(b)(1)(B) shall
be equal to the sum of—
‘‘(i) the compensation includible in
such individual’s gross income for the tax-
able year, plus
‘‘(ii) the compensation includible in
the gross income of such individual’s
spouse for the taxable year reduced by the
amount of the limitation under section
219(b)(1) applicable to such spouse for
such taxable year.
‘‘(B) INDIVIDUALS TO WHOM PARAGRAPH
APPLIES.—This paragraph shall apply to any
individual if—
‘‘(i) such individual files a joint return
for the taxable year, and
‘‘(ii) the amount of compensation (if
any) includible in such individual’s gross
income for the taxable year is less than the
compensation includible in the gross in-
come of such individual’s spouse for the
taxable year.
‘‘(4) TAX
ON
EXCESS
CONTRIBUTIONS.—Sec-
tion 4973 shall be applied separately with respect to
individual retirement plans which are RYS Accounts
and individual retirement plans which are not RYS
Accounts; except that, for purposes of applying such
section with respect to individual retirement plans
which are RYS Accounts, the limitation under para-
graph (3) shall be taken into account.
‘‘(5) LIMITATIONS
ON
ROLLOVER
CONTRIBU-
TIONS.—No rollover contribution may be made to an
RYS Account unless—
‘‘(A) such contribution is from another
RYS Account, or
‘‘(B) such contribution is from an individ-
ual retirement plan (other than an RYS Ac-
count) and is made before January 1, 1998.
‘‘(d) DISTRIBUTION RULES.—For purposes of this
title—
‘‘(1) EXCLUSION
FROM
GROSS
INCOME; NO
PENALTY TAX.—No portion of a qualified distribu-
tion from an RYS Account shall be includible in
gross income.
‘‘(2) QUALIFIED DISTRIBUTION.—For purposes
of this subsection, the term ‘qualified distribution’
means any payment or distribution—
‘‘(A) made on or after the date on which
the individual attains age 591⁄2,
‘‘(B) made to a beneficiary (or to the es-
tate of the individual) on or after the death of
the individual, or
‘‘(C) attributable to the individual’s being
disabled 
(within 
the 
meaning 
of 
section
72(m)(7)).
‘‘(e) OTHER DEFINITIONS.—For purposes of this
section—
‘‘(1) ROLLOVER
CONTRIBUTIONS.—The term
‘rollover contributions’ means contributions de-
scribed in sections 402(c), 403(a)(4), 403(b)(8), or
408(d)(3).
‘‘(2) COMPENSATION.—The term ‘compensa-
tion’ has the meaning given such term by section
219(f).’’
(b) CLERICAL AMENDMENT.—The table of sections
for subpart A of part I of subchapter D of chapter 1 of
such Code is amended by inserting after the item relating
to section 408 the following new item:
‘‘Sec. 408A. Retirement Years Savings Accounts.’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 1995.
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