Airline Pilots Retirement Security Act
Bill: H.R.3038 | Sponsor: Rep. Ferguson, A. Drew, IV (R-GA)
Policy area: Taxation

Summary:
Airline Pilots Retirement Security Act
This bill allows catch up contributions to tax-exempt retirement plans for employees subject to a federally-mandated retirement age, in the three years prior to and including such retirement age (e.g., airline pilots). The amount of such contribution is twice the current allowable amount.
The bill also modifies the cost-of-living adjustment to the defined contribution plan limit of a tax-exempt employer retirement plan.

To amend the Internal Revenue Code to authorize an employee subject to 
 a federally mandated retirement age, in the three years prior to and 
including such retirement age, to make additional contributions toward 
           a qualified employer plan, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Airline Pilots Retirement Security 
Act''.

SEC. 2. CATCH-UP CONTRIBUTIONS.

    (a) In General.--Section 414(v) of the Internal Revenue Code of 
1986 is amended--
            (1) in paragraph (2)(A), by striking ``A plan'' and 
        inserting ``Except as provided in subparagraph (E)'', and
            (2) by adding at the end the following new subparagraph:
                    ``(E) Catch up contributions for individuals within 
                of federally mandated retirement age.--For each of the 
                3 taxable years of employment of an employee subject to 
                a federally mandated retirement age, the applicable 
                dollar amount shall be twice the dollar amount in 
                effect under subparagraph (B).''.
    (b) Effective Date.--The amendments made by this section shall 
apply to contributions in taxable years beginning after December 31, 
2020.

SEC. 3. COST OF LIVING ADJUSTMENT FOR DEFINED CONTRIBUTION PLAN LIMIT 
              OF A QUALIFIED EMPLOYER RETIREMENT PLAN.

    (a) In General.--Section 415(d) of the Internal Revenue Code of 
1986 is amended--
            (1) by amending paragraph (1)(C) to read as follows:
                    ``(C) the following amount, as applicable:
                            ``(i) the $40,000 amount in subsection 
                        (c)(1)(A) with respect to adjustments for 
                        calendar years ending before January 1, 2022, 
                        or
                            ``(ii) $30,000 with respect to adjustments 
                        for calendar years beginning on and after 
                        January 1, 2022,
                for increases in the cost-of-living in accordance with 
                regulations prescribed by the Secretary.'',
            (2) by amending paragraph (3)(D) to read as follows:
                    ``(D) Amount under paragraph (1)(c).--With respect 
                to adjustments for calendar years ending before January 
                1, 2022, the base period taken into account for 
                purposes of paragraph (1)(C) is the calendar quarter 
                beginning July 1, 2001. With respect to adjustments for 
                calendar years beginning on and after January 1, 2022, 
                the base period taken into account for purposes of 
                paragraph (1)(C) is the calendar quarter beginning July 
                1, 1987.'', and
            (3) in paragraph (4)(B), by striking the header and 
        inserting ``Amount under paragraph (1)(c).''
    (b) Effective Date.--The amendments made by this section shall 
apply to contributions in taxable years beginning after December 31, 
2021.
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