Catch-Up Lost Retirement Savings Act

        [Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2240 Introduced in House (IH)]

108th CONGRESS
1st Session
H. R. 2240

To amend the Internal Revenue Code of 1986 to assist individuals who
have lost their 401(k) savings to make additional retirement savings
through individual retirement account contributions, and for other
purposes.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

May 22, 2003

Ms. Hooley of Oregon (for herself and Mr. Walden of Oregon) 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 assist individuals who
have lost their 401(k) savings to make additional retirement savings
through individual retirement account contributions, and for other
purposes.

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 ``Catch-Up Lost Retirement Savings
Act''.

SEC. 2. ALLOWANCE OF CATCH-UP PAYMENTS.

(a) In General.--Section 219(b)(5) of the Internal Revenue Code of
1986 (relating to deductible amount) is amended by redesignating
subparagraph (C) as subparagraph (D) and by inserting after
subparagraph (A) the following new subparagraph:
``(C) Catch-up contributions for certain
individuals.--
``(i) In general.--In the case of an
eligible individual who elects to make a
qualified retirement contribution in addition
to the deductible amount determined under
subparagraph (A)--
``(I) the deductible amount for any
taxable year shall be increased by an
amount equal to 3 times the applicable
amount determined under subparagraph
(B) for such taxable year, and
``(II) subparagraph (B) shall not
apply.
``(ii) Eligible individual.--For purposes
of this subparagraph, the term `eligible
individual' means, with respect to any taxable
year, any individual who was a qualified
participant in a qualified cash or deferred
arrangement (as defined in section 401(k)) of
an employer described in clause (ii) under
which the employer matched at least 50 percent
of the employee's contributions to such
arrangement with stock of such employer.
``(iii) Employer described.--An employer is
described in this clause if, in any taxable
year preceding the taxable year described in
clause (ii)--
``(I) such employer (or any
controlling corporation of such
employer) was a debtor in a case under
title 11 of the United States Code, or
similar Federal or State law, and
``(II) such employer (or any other
person) was subject to an indictment or
conviction resulting from business
transactions related to such case.
``(iv) Qualified participant.--For purposes
of clause (ii), the term `qualified
participant' means any eligible individual who
was a participant in the cash or deferred
arrangement described in clause (i) at least 6
months before the filing of the case described
in clause (iii).
``(v) Termination.--This subparagraph shall
not apply to taxable years beginning after
December 31, 2007.''.
(b) Credit Allowed for Catch-Up Contributions.--Subpart A of part
IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986
(relating to nonrefundable personal credits) is amended by inserting
after section 25B the following new section:

``SEC. 25C. CERTAIN CATCH-UP IRA CONTRIBUTIONS.

``(a) Allowance of Credit.--In the case of an eligible individual
who makes an election under section 219(b)(5)(C) for the taxable year,
there shall be allowed as a credit against the tax imposed by this
chapter for such taxable year an amount equal to 50 percent of so much
of the qualified retirement savings contributions of the eligible
individual for the taxable year as do not exceed the increase in the
deductible amount determined under section 219(b)(5)(C).
``(b) Denial of Double Benefit.--No deduction or other credit shall
be allowed with respect to any contribution to which a credit is
allowed under subsection (a).
``(c) Investment in the Contract.--Notwithstanding any other
provision of law, a qualified retirement savings contribution shall not
fail to be included in determining the investment in the contract for
purposes of section 72 by reason of the credit under this section.
``(d) Termination.--This section shall not apply to taxable years
beginning after December 31, 2007.''.
(c) Conforming Amendment.--The table of sections for subpart A of
part IV of subchapter A of chapter 1 of the Internal Revenue Code of
1986 is amended by inserting after the item relating to section 25B the
following new item:

``Sec. 25C. Certain catch-up IRA
contributions.''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2002.
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