To amend the Internal Revenue Code of 1986 to repeal the 1993 income tax increase on Social Security benefits to increase the age at which distributions must commence from certain retirement plans from 70 1/2 to 80.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Seniors' Retirement Recovery Act of 
2005''.

SEC. 2. REPEAL OF 1993 INCOME TAX INCREASE ON SOCIAL SECURITY BENEFITS.

    (a) Restoration of Prior Law Formula.--Subsection (a) of section 86 
of the Internal Revenue Code of 1986 is amended to read as follows:
    ``(a) In General.--Gross income for the taxable year of any 
taxpayer described in subsection (b) (notwithstanding section 207 of 
the Social Security Act) includes Social Security benefits in an amount 
equal to the lesser of--
            ``(1) one-half of the Social Security benefits received 
        during the taxable year, or
            ``(2) one-half of the excess described in subsection 
        (b)(1).''.
    (b) Repeal of Adjusted Base Amount.--Subsection (c) of section 86 
of such Code is amended to read as follows:
    ``(c) Base Amount.--For purposes of this section, the term `base 
amount' means--
            ``(1) except as otherwise provided in this subsection, 
        $25,000,
            ``(2) $32,000 in the case of a joint return, and
            ``(3) zero in the case of a taxpayer who--
                    ``(A) is married as of the close of the taxable 
                year (within the meaning of section 7703) but does not 
                file a joint return for such year, and
                    ``(B) does not live apart from his spouse at all 
                times during the taxable year.''.
    (c) Conforming Amendments.--
            (1) Subparagraph (A) of section 871(a)(3) of such Code is 
        amended by striking ``85 percent'' and inserting ``50 
        percent''.
            (2)(A) Subparagraph (A) of section 121(e)(1) of the Social 
        Security Amendments of 1983 (Public Law 98-21) is amended--
                    (i) by striking ``(A) There'' and inserting 
                ``There'';
                    (ii) by striking ``(i)'' immediately following 
                ``amounts equivalent to''; and
                    (iii) by striking ``, less (ii)'' and all that 
                follows and inserting a period.
            (B) Paragraph (1) of section 121(e) of such Act is amended 
        by striking subparagraph (B).
            (C) Paragraph (3) of section 121(e) of such Act is amended 
        by striking subparagraph (B) and by redesignating subparagraph 
        (C) as subparagraph (B).
            (D) Paragraph (2) of section 121(e) of such Act is amended 
        in the first sentence by striking ``paragraph (1)(A)'' and 
        inserting ``paragraph (1)''.
    (d) Effective Dates.--
            (1) In general.--Except as otherwise provided in this 
        subsection, the amendments made by this section shall apply to 
        taxable years beginning after December 31, 2005.
            (2) Subsection (c)(1).--The amendment made by subsection 
        (c)(1) shall apply to benefits paid after December 31, 2005.
            (3) Subsection (c)(2).--The amendments made by subsection 
        (c)(2) shall apply to tax liabilities for taxable years 
        beginning after December 31, 2005.
    (e) Maintenance of Transfers to Hospital Insurance Trust Fund.--
            (1) In general.--There are hereby appropriated to the 
        Hospital Insurance Trust Fund established under section 1817 of 
        the Social Security Act amounts equal to the reduction in 
        revenues to the Treasury by reason of the enactment of this 
        Act. Amounts appropriated by the preceding sentence shall be 
        transferred from the general fund at such times and in such 
        manner as to replicate to the extent possible the transfers 
        which would have occurred to such Trust Fund had this Act not 
        been enacted.
            (2) Reports.--The Secretary of the Treasury or the 
        Secretary's delegate shall annually report to the Committee on 
        Ways and Means of the House of Representatives and the 
        Committee on Finance of the Senate the amounts and timing of 
        the transfers under this subsection.

SEC. 3. AGE FOR BEGINNING MANDATORY DISTRIBUTIONS INCREASED TO 80.

    (a) Qualified Pension Plans.--Subparagraphs (B)(iv) and (C) of 
section 401(a)(9) of the Internal Revenue Code of 1986 (relating to 
required distributions) are each amended by striking ``70\1/2\'' each 
place it appears and inserting ``80''.
    (b) Individual Retirement Plans.--
            (1) Paragraph (1) of section 219(d) of such Code is 
        amended--
                    (A) by striking ``70\1/2\'' in the text and 
                inserting ``80'', and
                    (B) by striking ``70\1/2\'' in the heading and 
                inserting ``80''.
            (2) Subsection (b) of section 408 of such Code is amended 
        by striking ``70\1/2\'' and inserting ``80''.
    (c) Roth IRA's.--Paragraph (4) of section 408A(c) of such Code is 
amended--
            (1) by striking ``70\1/2\'' in the text and inserting 
        ``80'', and
            (2) by striking ``70\1/2\'' in the heading and inserting 
        ``80''.
    (d) Section 457 Plans.--Clause (i) of section 457(d)(1)(A) of such 
Code is amended by striking ``70\1/2\'' and inserting ``80''.
    (e) Effective Date.--The amendments made by this section shall 
apply to distributions after the date of the enactment of this Act.

Summary: Seniors' Retirement Recovery Act of 2005 - Amends the Internal Revenue Code to repeal the 85 percent maximum tax rate on Social Security and Railroad Retirement benefits enacted by the Omnibus Budget Reconciliation Act of 1993. Appropriates, from the general fund, to the Hospital Insurance Trust Fund amounts equal to the reduction in revenues resulting from the repeal of the 85 percent rate.

Increases from 70 1/2 to 80 the age at which pension plan and individual retirement account beneficiaries must begin taking distributions.