Title: Servicemember Retirement Improvement Act
Policy area: Taxation

Summary:
Servicemember Retirement Improvement Act
This bill amends the Internal Revenue Code to allow members of the Ready Reserve of a reserve component of the Armed Forces to make the maximum allowable contribution ($18,000 in 2017) to their Thrift Savings Plans (TSPs) without limiting the amount such members may contribute to a retirement plan based upon other employment. The bill also doubles the maximum allowable contribution amount to the TSPs of federal employees in the Ready Reserve who are not eligible to make contributions to any plan other than the TSP.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 492 Introduced in Senate (IS)]

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115th CONGRESS
  1st Session
                                 S. 492

  To amend the Internal Revenue Code of 1986 to allow members of the 
   Ready Reserve of a reserve component of the Armed Forces to make 
 elective deferrals on the basis of their service to the Ready Reserve 
              and on the basis of their other employment.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 2, 2017

 Mr. Cornyn (for himself and Mr. Casey) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
  To amend the Internal Revenue Code of 1986 to allow members of the 
   Ready Reserve of a reserve component of the Armed Forces to make 
 elective deferrals on the basis of their service to the Ready Reserve 
              and on the basis of their other employment.

    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 ``Servicemember Retirement Improvement 
Act''.

SEC. 2. ELECTIVE DEFERRALS BY MEMBERS OF THE READY RESERVE OF A RESERVE 
              COMPONENT OF THE ARMED FORCES.

    (a) In General.--Section 402(g) of the Internal Revenue Code of 
1986 is amended by adding at the end the following new paragraph:
            ``(9) Elective deferrals by members of ready reserve.--
                    ``(A) In general.--In the case of a qualified ready 
                reservist (other than a specified Federal employee 
                ready reservist) for any taxable year, the limitations 
                of subparagraphs (A) and (C) of paragraph (1) shall be 
                applied separately with respect to--
                            ``(i) elective deferrals of such qualified 
                        ready reservist with respect to the Thrift 
                        Savings Fund (as defined in section 7701(j)), 
                        and
                            ``(ii) any other elective deferrals of such 
                        qualified ready reservist.
                    ``(B) Special rule for federal employees in the 
                ready reserve not eligible to make elective deferrals 
                to a plan other than the thrift savings plan.--In the 
                case of a specified Federal employee ready reservist 
                for any taxable year--
                            ``(i) the applicable dollar amount in 
                        effect under paragraph (1)(B) for such taxable 
                        year shall be twice such amount (as determined 
                        without regard to this subclause), and
                            ``(ii) for purposes of paragraph (1)(C), 
                        the applicable dollar amount under section 
                        414(v)(2)(B)(i) (as otherwise determined for 
                        purposes of paragraph (1)(C)) shall be twice 
                        such amount (as determined without regard to 
                        this subclause).
                    ``(C) Definitions.--For purposes of this 
                paragraph--
                            ``(i) Qualified ready reservist.--The term 
                        `qualified ready reservist' means any 
                        individual for any taxable year if such 
                        individual received compensation for service as 
                        a member of the Ready Reserve of a reserve 
                        component (as defined in section 101 of title 
                        37, United States Code) during such taxable 
                        year.
                            ``(ii) Specified federal employee ready 
                        reservist.--The term `specified Federal 
                        employee ready reservist' means any individual 
                        for any taxable year if such individual--
                                    ``(I) is a qualified ready 
                                reservist for such taxable year,
                                    ``(II) would be eligible to make 
                                elective deferrals with respect to the 
                                Thrift Savings Fund (as defined in 
                                section 7701(j)) during such taxable 
                                year determined without regard to the 
                                service of such individual described in 
                                clause (i), and
                                    ``(III) is not eligible to make 
                                elective deferrals with respect to any 
                                plan other than such Thrift Savings 
                                Fund during such taxable year.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after the date of the enactment of this Act.
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