Increases the age at which pension and retirement distributions must begin from 70 1/2 to 80.
[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5568 Introduced in House (IH)]
107th CONGRESS
2d Session
H. R. 5568
To amend the Internal Revenue Code of 1986 to repeal the 1993 income
tax increase on Social Security benefits and to increase the age at
which distributions must commence from certain retirement plans from
70\1/2\ to 80.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
October 7, 2002
Mr. Weldon of Florida 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 repeal the 1993 income
tax increase on Social Security benefits and to increase the age at
which distributions must commence from certain retirement plans from
70\1/2\ to 80.
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 ``Seniors' Retirement Recovery Act of
2002''.
SEC. 2. REPEAL OF 1993 INCOME TAX INCREASE ON SOCIAL SECURITY BENEFITS.
(a) Restoration of Prior Law Formula.--Subsection (a) of section 86
of the Internal Revenue Code of 1986 is amended to read as follows:
``(a) In General.--Gross income for the taxable year of any
taxpayer described in subsection (b) (notwithstanding section 207 of
the Social Security Act) includes Social Security benefits in an amount
equal to the lesser of--
``(1) one-half of the Social Security benefits received
during the taxable year, or
``(2) one-half of the excess described in subsection
(b)(1).''.
(b) Repeal of Adjusted Base Amount.--Subsection (c) of section 86
of such Code is amended to read as follows:
``(c) Base Amount.--For purposes of this section, the term `base
amount' means--
``(1) except as otherwise provided in this subsection,
$25,000,
``(2) $32,000 in the case of a joint return, and
``(3) zero in the case of a taxpayer who--
``(A) is married as of the close of the taxable
year (within the meaning of section 7703) but does not
file a joint return for such year, and
``(B) does not live apart from his spouse at all
times during the taxable year.''.
(c) Conforming Amendments.--
(1) Subparagraph (A) of section 871(a)(3) of such Code is
amended by striking ``85 percent'' and inserting ``50
percent''.
(2)(A) Subparagraph (A) of section 121(e)(1) of the Social
Security Amendments of 1983 (Public Law 98-21) is amended--
(i) by striking ``(A) There'' and inserting
``There'';
(ii) by striking ``(i)'' immediately following
``amounts equivalent to''; and
(iii) by striking ``, less (ii)'' and all that
follows and inserting a period.
(B) Paragraph (1) of section 121(e) of such Act is amended
by striking subparagraph (B).
(C) Paragraph (3) of section 121(e) of such Act is amended
by striking subparagraph (B) and by redesignating subparagraph
(C) as subparagraph (B).
(D) Paragraph (2) of section 121(e) of such Act is amended
in the first sentence by striking ``paragraph (1)(A)'' and
inserting ``paragraph (1)''.
(d) Effective Dates.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply to
taxable years beginning after December 31, 2001.
(2) Subsection (c)(1).--The amendment made by subsection
(c)(1) shall apply to benefits paid after December 31, 2001.
(3) Subsection (c)(2).--The amendments made by subsection
(c)(2) shall apply to tax liabilities for taxable years
beginning after December 31, 2001.
(e) Maintenance of Transfers to Hospital Insurance Trust Fund.--
(1) In general.--There are hereby appropriated to the
Hospital Insurance Trust Fund established under section 1817 of
the Social Security Act amounts equal to the reduction in
revenues to the Treasury by reason of the enactment of this
Act. Amounts appropriated by the preceding sentence shall be
transferred from the general fund at such times and in such
manner as to replicate to the extent possible the transfers
which would have occurred to such Trust Fund had this Act not
been enacted.
(2) Reports.--The Secretary of the Treasury or the
Secretary's delegate shall annually report to the Committee on
Ways and Means of the House of Representatives and the
Committee on Finance of the Senate the amounts and timing of
the transfers under this subsection.
SEC. 3. AGE FOR BEGINNING MANDATORY DISTRIBUTIONS INCREASED TO 80.
(a) Qualified Pension Plans.--Subparagraphs (B)(iv) and (C) of
section 401(a)(9) of the Internal Revenue Code of 1986 (relating to
required distributions) are each amended by striking ``70\1/2\'' each
place it appears and inserting ``80''.
(b) Individual Retirement Plans.--
(1) Paragraph (1) of section 219(d) of such Code is
amended--
(A) by striking ``70\1/2\'' in the text and
inserting ``80'', and
(B) by striking ``70\1/2\'' in the heading and
inserting ``80''.
(2) Subsection (b) of section 408 of such Code is amended
by striking ``70\1/2\'' and inserting ``80''.
(c) Roth IRA's.--Paragraph (4) of section 408A(c) of such Code is
amended--
(1) by striking ``70\1/2\'' in the text and inserting
``80'', and
(2) by striking ``70\1/2\'' in the heading and inserting
``80''.
(d) Section 457 Plans.--Clause (i) of section 457(d)(1)(A) of such
Code is amended by striking ``70\1/2\'' and inserting ``80''.
(e) Effective Date.--The amendments made by this section shall
apply to distributions after the date of the enactment of this Act.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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