Retirement Protection Act of 2022
Bill: H.R.8579 | Sponsor: Rep. Schweikert, David (R-AZ)
Policy area: Labor and Employment

Summary:
Retirement Protection Act of 2022
This bill temporarily increases the contribution limits for certain retirement accounts. It also modifies the tax credit for contributions to certain retirement accounts (i.e., the Saver's Credit).

To increase retirement savings, simplify and clarify retirement plan 
                     rules, 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 ``Retirement Protection Act of 2022''.

SEC. 2. ENHANCEMENT OF SAVER'S CREDIT.

    (a) 50 Percent Credit Rate.--Section 25B(a) of the Internal Revenue 
Code of 1986 is amended by striking ``the applicable percentage'' and 
inserting ``50 percent''.
    (b) Adjusted Gross Income Phaseouts.--Section 25B(b) of such Code 
is amended to read as follows:
    ``(b) Limitation.--For purposes of this section--
            ``(1) In general.--The amount of credit allowable under 
        subsection (a) (determined without regard to this subsection) 
        shall be reduced (but not below zero) by an amount which bears 
        the same ratio to the credit otherwise so allowable as--
                    ``(A) the excess (if any) of--
                            ``(i) adjusted gross income of the 
                        taxpayer, over
                            ``(ii) the threshold amount, bears to
                    ``(B) the phaseout amount.
            ``(2) Threshold amount.--The term `threshold amount' 
        means--
                    ``(A) in the case of a joint return or a surviving 
                spouse (as defined in section 2(a)), $48,000,
                    ``(B) in the case of a head of household, 75 
                percent of the amount in effect for the taxable year 
                under subparagraph (A), and
                    ``(C) in the case of any other individual, 50 
                percent of the amount in effect for the taxable year 
                under subparagraph (A).
            ``(3) Phaseout amount.--The term `phaseout amount' means--
                    ``(A) in the case of a joint return or a surviving 
                spouse (as defined in 2(a)), $35,000,
                    ``(B) in the case of a head of household (as 
                defined in section 2(b)), 75 percent of the amount in 
                effect for the taxable year under subparagraph (A), and
                    ``(C) in the case of any other individual, 50 
                percent of the amount in effect for the taxable year 
                under subparagraph (A).
            ``(4) Inflation adjustment.--
                    ``(A) In general.--In the case of any taxable year 
                beginning in a calendar year after 2023, the $48,000 
                dollar amount in paragraph (2) and the $35,000 in 
                paragraph (3) shall each be increased by an amount 
                equal to--
                            ``(i) such dollar amount, multiplied by
                            ``(ii) the cost-of-living adjustment 
                        determined under section 1(f)(3) for the 
                        calendar year in which the taxable year begins, 
                        determined by substituting `calendar year 2022' 
                        for `calendar year 2016' in subparagraph 
                        (A)(ii) thereof.
                    ``(B) Rounding.--Any increase determined under 
                subparagraph (A) that is not a multiple of $500 shall 
                be rounded to the nearest multiple of $500.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 3. TEMPORARY INCREASE IN RETIREMENT CONTRIBUTION LIMITS.

    (a) Defined Contribution Plans.--In the case of the first taxable 
year of an individual ending after the date of the enactment of this 
Act--
            (1) Elective deferrals.--The applicable dollar amount for 
        elective deferrals under section 402(g) of the Internal Revenue 
        Code of 1986, and any dollar limitation determined by reference 
        thereto, shall be increased by $4,000.
            (2) 457 plans.--The applicable dollar amount under section 
        457(e)(15)(A) of such Code with respect to an eligible deferred 
        compensation plan (as defined in section 457(b) of such Code) 
        shall be increased by $4,000.
    (b) Individual Retirement Accounts.--In the case of the first 
taxable year of an individual ending after the date of the enactment of 
this Act--
            (1) In general.--The deductible amount under section 
        219(b)(1)(A) of such Code shall be increased by $4,000. For 
        purposes of such Code, the preceding sentence shall be taken 
        into account in determining the maximum amount allowable as a 
        deduction under section 219.
            (2) Simple retirement accounts.--In the case of elective 
        employer contributions to a simple retirement account (as 
        defined in section 408(p) of such Code), the applicable dollar 
        amount under paragraph (2)(E) thereof shall increased by 
        $4,000.
    (c) Certain Contributions Made After Close of Taxable Year.--In the 
case of a contribution--
            (1) which is made after the first taxable year of an 
        individual ending after the date of the enactment of this Act, 
        and before the 15th day of the fourth month following the close 
        of such taxable year, and
            (2) to which subsection (b) would apply were such 
        contribution made before the end of such first taxable year,
the taxpayer may elect to treat such contribution as made during such 
taxable year for purposes of this section.
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