H.R. 6056

To amend the Internal Revenue Code of 1986 to treat certain employee-funded pensions created before June 25, 1959, in the same manner as qualified trusts for purposes of unrelated debt-financed income derived from real property, and to increase the limitation on elective deferrals to such employee-funded pensions.

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I

111th CONGRESS

2d Session

H. R. 6056

IN THE HOUSE OF REPRESENTATIVES

July 30, 2010

Mr. Neal of Massachusetts 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 treat certain employee-funded pensions created before June 25, 1959, in the same manner as qualified trusts for purposes of unrelated debt-financed income derived from real property, and to increase the limitation on elective deferrals to such employee-funded pensions.

1.

Exemption for income from leveraged real estate held by 501(c)(18) trust

(a)

In general

Subparagraph (C) of section 514(c)(9) of the Internal Revenue Code of 1986 (relating to real property acquired by a qualified organization) is amended by striking or at the end of clause (iii), by striking the period at the end of clause (iv) and inserting ; or, and by adding at the end the following new clause:

(v)

a trust described in section 501(c)(18).

.

(b)

Effective date

The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.

2.

Elective deferral parity for 501(c)(18) trusts

(a)

In general

Subparagraph (A) of section 219(b)(3) of the Internal Revenue Code of 1986 (relating to plans under section 501(c)(18)) is amended by striking $7,000 and inserting the amount in effect for the taxable year under section 402(g)(1)(B).

(b)

Effective date

The amendment made by this section shall apply to taxable years beginning after the date of the enactment of this Act.