I
107TH CONGRESS
2D SESSION
H. R. 4482
To amend the Internal Revenue Code of 1986 to provide for Universal
Retirement Savings Accounts in lieu of the various individual retirement
plans.
IN THE HOUSE OF REPRESENTATIVES
APRIL 18, 2002
Mr. GEPHARDT 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 provide
for Universal Retirement Savings Accounts in lieu of
the various individual retirement 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.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Universal and Portable Pension Act of 2002’’.
(b) AMENDMENT OF 1986 CODE.—Except as other-
wise expressly provided, whenever in this Act an amend-
ment or repeal is expressed in terms of an amendment
to, or repeal of, a section or other provision, the reference
shall be considered to be made to a section or other provi-
sion of the Internal Revenue Code of 1986.
SEC. 2. UNIVERSAL RETIREMENT SAVINGS ACCOUNTS.
(a) DEDUCTION FOR CONTRIBUTIONS.—
(1) IN GENERAL.—Part VII of subchapter B of
chapter 1 (relating to additional itemized deductions
for individuals) is amended by inserting after section
219 the following new section:
‘‘SEC. 219A. CONTRIBUTIONS TO UNIVERSAL RETIREMENT
SAVINGS ACCOUNTS.
‘‘(a) ALLOWANCE OF DEDUCTION.—In the case of an
individual, there shall be allowed as a deduction an
amount equal to the qualified universal retirement con-
tributions of the individual for the taxable year.
‘‘(b) MAXIMUM AMOUNT OF DEDUCTION.—
‘‘(1) IN GENERAL.—The amount allowable as a
deduction under subsection (a) to any individual for
any taxable year shall not exceed the lesser of—
‘‘(A) the deductible amount, or
‘‘(B) an amount equal to the compensation
includible in the individual’s gross income for
such taxable year.
‘‘(2) DEDUCTIBLE AMOUNT.—For purposes of
paragraph (1)(A), the deductible amount shall be de-
termined in accordance with the following table:
‘‘For taxable years beginning
The deductible
in calendar year—
amount is—
2002, 2003, or 2004 ............................................................$3,000
2005, 2006, or 2007 ............................................................$4,000
2008 or thereafter ................................................................$5,000.
‘‘(3) COST-OF-LIVING ADJUSTMENT.—
‘‘(A) IN
GENERAL.—In the case of any
taxable year beginning in a calendar year after
2008, the $5,000 amount in paragraph (2)
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 2007’ for ‘calendar year 1992’ in sub-
paragraph (B) thereof.
‘‘(B) ROUNDING.—If any amount after ad-
justment under clause (i) is not a multiple of
$500, such amount shall be rounded to the next
lower multiple of $500.
‘‘(c) LIMITATION BASED ON ADJUSTED GROSS IN-
COME.—
‘‘(1) IN GENERAL.—The deductible amount oth-
erwise applicable under subsection (b) for any tax-
able year shall be reduced (but not below zero) by
the amount determined under paragraph (2).
‘‘(2) AMOUNT OF REDUCTION.—
‘‘(A) IN
GENERAL.—The amount deter-
mined under this paragraph with respect to any
dollar limitation shall be the amount which
bears the same ratio to such limitation as—
‘‘(i) the excess of—
‘‘(I) 
the 
taxpayer’s 
adjusted
gross income for such taxable year,
over
‘‘(II) $50,000 ($100,000 in the
case of a joint return), bears to
‘‘(ii) $50,000 ($60,000 in the case of
a joint return).
‘‘(B) NO REDUCTION BELOW $200 UNTIL
COMPLETE
PHASE-OUT.—No dollar limitation
shall be reduced below $200 under paragraph
(1) unless (without regard to this subpara-
graph) such limitation is reduced to zero.
‘‘(C) ROUNDING.—Any amount determined
under this paragraph which is not a multiple of
$10 shall be rounded to the next lowest $10.
‘‘(3) ADJUSTED GROSS INCOME.—For purposes
of this subsection, adjusted gross income of any tax-
payer shall be determined—
‘‘(A) after application of sections 86, 219,
and 469, and
‘‘(B) without regard to sections 135, 137,
221, 222, and 911 or the deduction allowable
under this section.
‘‘(4) MARRIED INDIVIDUALS FILING SEPARATE
RETURNS.—
‘‘(A) IN GENERAL.—In the case of a mar-
ried individual filing a separate return, the
amount 
applicable 
under 
paragraph
(2)(A)(i)(II) is zero.
‘‘(B) SPECIAL RULE FOR MARRIED INDI-
VIDUALS
FILING
SEPARATELY
AND
LIVING
APART.—A husband and wife who—
‘‘(i) file separate returns for any tax-
able year, and
‘‘(ii) live apart at all times during
such taxable year,
shall not be treated as married individuals for
purposes of this subsection.
‘‘(d) SPECIAL RULES FOR CERTAIN MARRIED INDI-
VIDUALS.—
‘‘(1) IN GENERAL.—In the case of an individual
to whom this paragraph applies for the taxable year,
the limitation of paragraph (1) of subsection (b)
shall be equal to the lesser of—
‘‘(A) the dollar amount in effect under
subsection (b)(1)(A) for the taxable year, or
‘‘(B) 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 allowed as a deduction under sub-
section (a) to such spouse for such taxable
year.
‘‘(2) INDIVIDUALS
TO
WHOM
PARAGRAPH
(1)
APPLIES.—Paragraph (1) shall apply to any indi-
vidual if—
‘‘(A) such individual files a joint return for
the taxable year, and
‘‘(B) 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 income of such individ-
ual’s spouse for the taxable year.
‘‘(e) QUALIFIED
UNIVERSAL
RETIREMENT
CON-
TRIBUTIONS.—For purposes of this section, the term
‘qualified universal retirement contribution’ means any
amount paid in cash for the taxable year by or on behalf
of an individual to a Universal Retirement Savings Ac-
count for such individual’s benefit.
‘‘(f) OTHER LIMITATIONS AND RESTRICTIONS.—
‘‘(1) BENEFICIARY
MUST
BE
UNDER
AGE
701⁄2.—No deduction shall be allowed under this sec-
tion with respect to any qualified retirement con-
tribution for the benefit of an individual if such indi-
vidual has attained age 701⁄2 before the close of such
individual’s taxable year for which the contribution
was made.
‘‘(2) RECONTRIBUTED
AMOUNTS.—No deduc-
tion shall be allowed under this section with respect
to a rollover contribution to a Universal Retirement
Savings Account.
‘‘(3) DENIAL
OF
DEDUCTION
FOR
AMOUNT
CONTRIBUTED TO INHERITED ACCOUNTS.—No de-
duction shall be allowed under this section with re-
spect to any amount paid to an inherited Universal
Retirement Savings Account.
‘‘(g) OTHER DEFINITIONS AND SPECIAL RULES.—