Detailed Instructions: In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
Q: SECTION 1. SHORT TITLE.

This Act may be cited as the ''IRA Savings Opportunity Act of
1997''.

SEC. 2. MODIFICATIONS TO INDIVIDUAL RETIREMENT PLANS.

(a) Increase in Income Limitations.--Subparagraph (B) of section
219(g)(3) of the Internal Revenue Code of 1986 is amended--
(1) by striking ''$40,000'' in clause (i) and inserting
''$80,000, and
(2) by striking ''$25,000'' in clause (ii) and inserting
''$50,000''.
(b) Extension of Phaseout Range.--Clause (ii) of section
219(g)(2)(A) of such Code is amended by striking ''$10,000'' and
inserting ''$20,000''.
(c) Additional $2,000 of Nondeductible Contributions Permitted for
Certain Individuals Who Are Not Active Participants in Employer
Plans.--
(1) In general.--Subparagraph (B) of section 408(o)(2) of
such Code (relating to nondeductible limit) is amended by
adding at the end the following new clause:
''(iii) Additional $2,000 of nondeductible
contributions permitted for certain individuals
who are not active participants in employer
plans.--
''(I) In general.--In the case of
an individual who is not an active
participant (as defined in section
219(g)) for any part of any plan year
ending with or within the taxable year,
the amount determined under clause
(i)(I) shall be increased by $2,000.
''(II) Reduction based on adjusted
gross income.--The $2,000 amount in
subclause (I) shall be reduced (but not
below zero) by an amount which bears
the same ratio to $2,000 as the excess
of the taxpayer's adjusted gross income
(as determined under section 219(g)(3))
for the taxable year over the
applicable dollar amount (as defined in
such section) bears to $20,000. The
rules of subparagraphs (B) and (C) of
paragraph (2), and paragraph (4), of
section 219(g) shall apply for purposes
of the preceding sentence.''
(2) Conforming amendments.--
(A) Subsections (a)(1), (b), and (j) of section 408
of such Code are each amended by striking ''$2,000''
and inserting ''$4,000''.
(B) The last sentence of section 408(d)(5) of such
Code is amended by striking before the period ''and by
treating the limitation under section 219(b)(1)(A) as
being $4,000''.
(C) The last sentence of section 4973(b) of such
Code (relating to excess contributions) is amended to
read as follows: ''For purposes of paragraphs (1)(B)
and (2)(C), the amount allowable as a deduction under
section 219 shall be computed without regard to section
219(g) and by treating the limitation under section
219(b)(1)(A) as being $4,000.''
(d) Eligibility for IRA Deduction Determined Without Regard to
Spouse's Participation in Pension Plan.--Paragraph (1) of section
219(g) of such Code (relating to limitation on deduction for active
participants in certain pension plans) is amended by striking ''or the
individual's spouse''.
(e) Alternative Credit for Lower Income Taxpayers.--
(1) In general.--Subpart A of part IV of subchapter A of
chapter 1 of such Code (relating to nonrefundable personal
credits) is amended by inserting after section 23 the following
new section:

''SEC. 24. RETIREMENT SAVINGS.

''(a) Allowance of Credit.--In the case of an individual, there
shall be allowed as a credit against the tax imposed by this chapter
for the taxable year an amount equal to 20 percent of the amount which
would (but for subsection (c)) be allowed as a deduction under section
219 for such taxable year.
''(b) Limitation Based on Adjusted Gross Income.--
''(1) In general.--The amount of the credit which would
(but for this subsection) be allowed under subsection (a) for
the taxable year shall be reduced (but not below zero) by an
amount which bears the same ratio to such amount of credit as--
''(A) the excess of--
''(i) the taxpayer's adjusted gross income
for such taxable year, over
''(ii) the applicable dollar amount, bears
to
''(B) $10,000.
''(2) Rounding.--Any amount determined under this
subsection which is not a multiple of $10 shall be rounded to
the next lowest $10.
''(3) Applicable dollar amount.--For purposes of this
subsection, the term 'applicable dollar amount' means--
''(A) in the case of a taxpayer filing a joint
return, $40,000,
''(B) in the case of any other taxpayer (other than
a married individual filing a separate return),
$25,000, and
''(C) in the case of a married individual filing a
separate return, zero.
The rule of section 219(g)(4) shall apply for purposes of this
paragraph.
''(c) Coordination With Deduction.--No deduction shall be allowed
under section 219 for amount paid by or on behalf of an individual for
any taxable year if any such amount (with respect to such individual)
is taken into account in determining the credit under this section for
such year.''
(2) Clerical amendment.--The table of sections for such
subpart A is amended by inserting after the item relating to
section 23 the following new item:

''Sec. 24. Retirement savings.''
(f) 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. COORDINATION OF IRA DEDUCTION LIMIT WITH ELECTIVE DEFERRAL
LIMIT.

(a) In General.--Section 219(b) of the Internal Revenue Code of
1986 (relating to maximum amount of deduction) is amended by adding at
the end the following new paragraph:
''(5) Coordination with elective deferral limit.--The
amount determined under paragraph (1) and subsection (c)(1)(A)
with respect to any individual for any taxable year shall not
exceed the excess (if any) of--
''(A) the limitation applicable for the taxable
year under section 402(g)(1), over
''(B) the elective deferrals (as defined in section
402(g)(3)) of such individual for 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.
A:
IRA Savings Opportunity Act of 1997 - Amends the Internal Revenue Code, with respect to retirement savings plans, to, among other things: (1) double income limitations; (2) permit a worker without an employer plan to contribute an additional $2,000 to a plan; and (3) allow a credit of 20 percent, subject to income limitations, for amounts which would otherwise be allowed as a qualified retirement deduction.