Roth IRA Flexibility Act of 2013

Bill: 113-hr-3078
Sponsor: full_name: Rep. Smith, Adam [D-WA-9]
Introduced: 2013-09-10
Policy area: Health
Subjects: Employee benefits and pensions

Health care costs and insurance

Medicare
Latest action: action_date: 2013-09-13
text: Referred to the Subcommittee on Health.

Summaries:
action_date: 2013-09-10
action_desc: Introduced in House
text: <p>Roth IRA Flexibility Act of 2013 - Amends part B (Supplementary Medical Insurance) of title XVIII (Medicare) of the Social Security Act with respect to the formula for reductions in the income-based subsidy for premiums under Medicare parts B and D (Voluntary Prescription Drug Benefit Program). Disregards, in computing adjusted gross income in that formula, any amounts transferred from a traditional individual retirement account (IRA) to a Roth IRA.</p> <p>Amends the Internal Revenue Code to authorize the use of tax return information involving such amounts for disclosure to carry out those subsidy adjustments.</p> <p>Directs the Secretary of Health and Human Services (HHS), in collaboration with the Commissioner of Social Security, to refund to an individual the portion of premiums paid under Medicare parts B and D equal to the difference between the premiums paid and the premiums the individual would have paid if any rollovers to a Roth IRA from an eligible non-Roth IRA retirement plan made on or after January 1, 2011, had not been taken into account.</p>

tv_txt: I 113th CONGRESS 1st Session H. R. 3078 IN THE HOUSE OF REPRESENTATIVES September 10, 2013 Mr. Smith of Washington introduced the following bill; which was referred to the Committee on Ways and Means , and in addition to the Committee on Energy and Commerce , for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To amend title XVIII of the Social Security Act to disregard amounts transferred from a traditional IRA to a Roth IRA in computing income for purposes of determining the income-related premiums under parts B and D of the Medicare program, and for other purposes.

1. Short title This Act may be cited as the Roth IRA Flexibility Act of 2013 . 2. Disregarding amounts transferred from a traditional IRA to a Roth IRA in computing income for purposes of determining the income-related premiums under parts B and D of the Medicare program (a) In general Section 1839(i)(4)(A)(i) of the Social Security Act ( 42 U.S.C. 1395r(i)(4)(A)(i) ) is amended by inserting and without regard to any distribution to which paragraph (3) of section 408A(d) of such Code (relating to rollovers from an eligible retirement plan other than a Roth IRA) applies before the semicolon. (b) Disclosure authority Section 6103(l)(20)(A) of the Internal Revenue Code of 1986 is amended— (1) by redesignating clauses (vii) and (viii) as clauses (viii) and (ix), respectively, and (2) by inserting after clause (vi) the following new clause: (vii) the amounts included in the taxpayer’s gross income under section 408A(d)(3) to the extent such information is available, . (c) Premium rebate based on certain previous distributions The Secretary of Health and Human Services shall provide, in collaboration with the Commissioner of Social Security, to an individual a refund of the premiums paid under parts B and D of title XVIII of the Social Security Act by the individual in an amount that is equal to the difference between such premiums paid by the individual and the premiums that would have been paid by the individual if distributions to which section 408A(d)(3) of the Internal Revenue Code of 1986 relate which were made on or after January 1, 2011, had not been taken into account. The Secretary of the Treasury, acting under section 6103(l)(20) of the Internal Revenue Code of 1986 and through the Commissioner of Social Security, shall provide such information as may be necessary to carry out the previous sentence and for purposes of subparagraph (B) of such section, activities to carry out this subsection shall be deemed to be related to establishing the appropriate amount of a premium adjustment under section 1839(i) of the Social Security Act. (d) Effective dates (1) In general The amendment made by subsection (a) shall apply with respect to premiums for months in years beginning more than 90 days after the date of the enactment of this Act. (2) Disclosure authority The amendments made by subsection (b) shall apply to requests for disclosure made after the date of the enactment of this Act (with respect to taxable years beginning before, on, or after such date).