IRA Act of 2021

Bill: 117-s-1961
Sponsor: full_name: Sen. Kennedy, John [R-LA]
Introduced: 2021-06-07
Policy area: Taxation
Subjects: Employee benefits and pensions

Income tax deductions

Income tax deferral

Inflation and prices
Latest action: action_date: 2021-06-07
text: Read twice and referred to the Committee on Finance.

Summaries:
action_date: 2021-06-07
action_desc: Introduced in Senate
text: <p><strong>Increasing Retirement Amount Act of 2021 or the IRA Act of 2021</strong></p> <p>This bill increases to $12,000 the retirement savings contribution limit for individual taxpayers not participating in an employed-sponsored retirement plan. It also increases the limit on catch-up contributions to retirement plans.</p>

tv_txt: II 117th CONGRESS 1st Session S. 1961 IN THE SENATE OF THE UNITED STATES June 7, 2021 Mr. Kennedy 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 increase IRA contribution limits for individuals without an employer retirement plan.

1. Short title This Act may be cited as the Increasing Retirement Amount Act of 2021 or the IRA Act of 2021 . 2. Increase in contribution limits for individuals without an employer retirement plan (a) In general Section 219 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: (h) Special rules for individuals without an employer plan For purposes of this section— (1) In general In the case of an applicable individual— (A) the deductible amount for purposes of subsection (b)(1)(A) is $12,000, and (B) the applicable amount for purposes of subsection (b)(5)(B)(i) is $3,000. (2) Cost-of-living adjustment (A) In general In the case of any taxable year beginning in a calendar year after 2022, the $12,000 amount under paragraph (1)(A) shall 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 2021 for calendar year 2016 in subparagraph (A)(ii) thereof. (B) Rounding rules If any amount after adjustment under subparagraph (A) is not a multiple of $500, such amount shall be rounded to the next lower multiple of $500. (3) Applicable individual For purposes of paragraph (1), the term applicable individual with respect to any taxable year means any individual whose employer does not maintain a plan described in any clause of subsection (g)(5)(A) for such taxable year. . (b) Coordination with Kay Bailey Hutchinson spousal IRA Subparagraph (A) of section 219(c)(1) of the Internal Revenue Code of 1986 is amended by striking (b)(1)(A) and inserting (b)(1)(A) (determined without regard to subsection (h)) . (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2021.