To amend the Internal Revenue Code of 1986 to increase the catch-up contribution limit for retirement plans of participants age 62 through 64.

Bill: 117-hr-2942
Sponsor: full_name: Rep. Schweikert, David [R-AZ-6]
Introduced: 2021-04-30
Policy area: Taxation
Subjects: Employee benefits and pensions

Income tax deferral

Income tax exclusion

Inflation and prices
Latest action: action_date: 2021-04-30
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2021-04-30
action_desc: Introduced in House
text: <p>This bill increases the amount of the catch-up contribution available to participants in certain tax-exempt retirement plans who have attained age 62, 63, or 64.</p>

tv_txt: I 117th CONGRESS 1st Session H. R. 2942 IN THE HOUSE OF REPRESENTATIVES April 30, 2021 Mr. Schweikert introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to increase the catch-up contribution limit for retirement plans of participants age 62 through 64.

1. Higher catch-up limit to apply at age 62, 63, and 64 (a) In general (1) Plans other than simple plans Section 414(v)(2)(B)(i) of the Internal Revenue Code of 1986 is amended by inserting the following before the period: ($10,000, in the case of an eligible participant who has attained age 62, but not age 65, before the close of the taxable year) . (2) Simple plans Section 414(v)(2)(B)(ii) of such Code is amended by inserting the following before the period: ($5,000, in the case of an eligible participant who has attained age 62, but not age 65, before the close of the taxable year) . (b) Cost-of-Living adjustments Subparagraph (C) of section 414(v)(2) of such Code is amended by adding at the end the following: In the case of a year beginning after December 31, 2022, the Secretary shall adjust annually the $10,000 amount in subparagraph (B)(i) and the $5,000 amount in subparagraph (B)(ii) for increases in the cost-of-living at the same time and in the same manner as adjustments under the preceding sentence; except that the base period taken into account shall be the calendar quarter beginning July 1, 2021. . (c) Effective date The amendments made by this section shall apply to years beginning after December 31, 2022.