IB 
Union Calendar No. 457
107TH CONGRESS 
2D SESSION 
H. R. 5558
[Report No. 107–733] 
To amend the Internal Revenue Code of 1986 to accelerate the increases 
in contribution limits to retirement plans and to increase the required 
beginning date for distributions from qualified plans. 
IN THE HOUSE OF REPRESENTATIVES 
OCTOBER 7, 2002
Mr. THOMAS introduced the following bill; which was referred to the 
Committee on Ways and Means 
OCTOBER 10 (legislative day, OCTOBER 9), 2002
Reported with an amendment, committed to the Committee of the Whole 
House on the State of the Union, and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of introduced bill, see copy of bill as introduced on October 7, 2002] 
A BILL 
To amend the Internal Revenue Code of 1986 to accelerate 
the increases in contribution limits to retirement plans 
and to increase the required beginning date for distribu-
tions from qualified plans.
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 ‘‘Retirement Savings and 
Security Act of 2002’’. 
SEC. 2. ACCELERATION OF INCREASES IN IRA CONTRIBU-
TION LIMIT. 
(a) DEDUCTIBLE AMOUNT.—Subparagraph (A) of sec-
tion 219(b)(5) of the Internal Revenue Code of 1986 is 
amended to read as follows: 
‘‘(A) IN GENERAL.—The deductible amount 
shall be $5,000.’’. 
(b) CATCH-UP AMOUNT.—Subparagraph (B) of section 
219(b)(5) of such Code is amended to read as follows: 
‘‘(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 dollar amount in ef-
fect under paragraph (1)(A) for such taxable 
year (determined without regard to this para-
graph) shall be increased by $1,000.’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2002. 
SEC. 3. ACCELERATION OF SCHEDULED INCREASES IN PEN-
SION PLAN CONTRIBUTION LIMITS. 
(a) ELECTIVE DEFERRALS.—Subparagraph (B) of sec-
tion 402(g)(1) of the Internal Revenue Code of 1986 is
amended by striking ‘‘the amount determined’’ and all that 
follows and inserting ‘‘$15,000.’’. 
(b) DEFERRED COMPENSATION PLANS OF STATE AND 
LOCAL
GOVERNMENTS
AND
TAX-EXEMPT
ORGANIZA-
TIONS.—Subparagraph (A) of section 457(e)(15) of such 
Code is amended by striking ‘‘the amount determined’’ and 
all that follows and inserting ‘‘$15,000.’’. 
(c) SIMPLE RETIREMENT ACCOUNTS.—Clause (i) of 
section 408(p)(2)(E) of such Code is amended by striking 
‘‘the amount determined’’ and all that follows and inserting 
‘‘$10,000.’’. 
(d) CATCH-UP CONTRIBUTIONS.—Subparagraph (B) 
of section 414(v)(2) of such Code is amended—
(1) in clause (i) by striking ‘‘determined’’ and 
all that follows and inserting ‘‘$5,000.’’, and 
(2) in clause (ii) by striking ‘‘determined’’ and 
all that follows and inserting ‘‘$2,500.’’. 
(e) EFFECTIVE DATE.—The amendments made by this 
section shall apply to years beginning after December 31, 
2002. 
SEC. 4. SIMPLIFICATION AND UPDATING OF THE MINIMUM 
DISTRIBUTION RULES. 
(a) REQUIRED DISTRIBUTIONS.—
(1) INCREASE IN AGE FOR REQUIRED BEGINNING 
DATE.—Subparagraphs (C)(i)(I) and (C)(ii)(I) of sec-
tion 401(a)(9) of the Internal Revenue Code of 1986 
are each amended by striking ‘‘age 701⁄2’’ and insert-
ing ‘‘the applicable age’’. 
(2) APPLICABLE AGE.—Subparagraph (C) of sec-
tion 401(a)(9) of such Code is amended by inserting 
at the end the following new clause: 
‘‘(v) APPLICABLE AGE.—The applica-
ble age shall be determined in accordance 
with the following table:
‘‘Calendar year: 
Applicable age is: 
2003 and 2004 ...................................................................
2005 and 2006 ...................................................................
2007 and thereafter ...........................................................
75.’’
(3) SPOUSE BENEFICIARIES.—Subclause (I) of 
section 401(a)(9)(B)(iv) is amended by striking ‘‘age 
701⁄2’’ and inserting ‘‘the applicable age’’. 
(4) ACTUARIAL ADJUSTMENT OF BENEFIT UNDER 
DEFINED
BENEFIT
PLAN.—Clause (iii) of section 
401(a)(9)(C) of such Code is amended to read as fol-
lows: 
‘‘(iii) ACTUARIAL ADJUSTMENT.—
‘‘(I) IN GENERAL.—In the case of 
a defined benefit plan, an employee’s 
accrued benefit shall be actuarially in-
creased to take into account the period 
after the applicable date during which
the employee was not eligible to receive 
any benefits under the plan. 
‘‘(II) 
APPLICABLE
DATE.—For 
purposes of clause (I), the term ‘appli-
cable date’ means the April 1st fol-
lowing the calendar year in which the 
employee attains age 701⁄2.’’. 
(b) EFFECTIVE DATE.—
(1) IN
GENERAL.—The amendments made by 
this section shall apply to years beginning after De-
cember 31, 2002. 
(2) TRANSITION.—A plan shall not be treated as 
failing to meet the requirements of section 401(a)(9) 
of the Internal Revenue Code of 1986 merely because, 
in years beginning after December 31, 2002, no dis-
tribution is made to an employee before the employ-
ee’s required beginning date, as determined in accord-
ance with the amendments made by this section.
Union Calendar No. 457
107TH CONGRESS 
2D SESSION 
H. R. 5558
[Report No. 107–733] 
A BILL 
To amend the Internal Revenue Code of 1986 to 
accelerate the increases in contribution limits to 
retirement plans and to increase the required be-
ginning date for distributions from qualified 
plans. 
OCTOBER 10 (legislative day, OCTOBER 9), 2002
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union, 
and ordered to be printed