S. 492Senate115th Congress (2017-2019)In Committee

Servicemember Retirement Improvement Act

Introduced March 2, 2017

AI-Generated Summary

Updated April 15, 2026 at 1:13 PM UTC

The Servicemember Retirement Improvement Act changes the tax code so that members of the Ready Reserve of any military reserve component can contribute to retirement savings plans based on both their reserve service and their civilian job. It creates separate contribution limits for the Thrift Savings Fund (the federal government’s retirement plan) and for any other retirement plan, and it gives certain federal‑employee reservists a higher contribution limit.

Key Provisions

  • Adds a new rule to the Internal Revenue Code allowing qualified Ready Reservists to apply the annual elective deferral limits separately for the Thrift Savings Fund and for other retirement plans.
  • Defines “qualified ready reservist” as anyone who received pay for service in the Ready Reserve during the tax year.
  • Provides a special provision for “specified Federal employee ready reservists” – federal employees in the Ready Reserve who can only contribute to the Thrift Savings Fund – allowing them to contribute up to twice the normal limit.
  • The changes take effect for tax years that begin after the law is enacted.

Legislative Activity

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1 earlier action
SenateIntro Referral Latest Action

Read twice and referred to the Committee on Finance. (text of measure as introduced: CR S1580)

March 2, 2017

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SenateIntro Referral

Introduced in Senate

March 2, 2017

SenateIntro Referral

Read twice and referred to the Committee on Finance. (text of measure as introduced: CR S1580)

March 2, 2017

Floor Debate

3 members

What members said about S. 492 on the floor

2 Republicans1 Democrat
Ron Wyden
Sen. Ron WydenD-OR · Mar 2, 2017

Mr. President, today I am introducing the Animal Welfare Accountability and Transparency Act. This bill is a necessary step to restoring public information on animal cruelty that was removed from the…

Steve Daines
Sen. Steve DainesR-MT · Mar 2, 2017

Mr. President, Montana is the fifth largest producer of hydropower in the Nation, with 23 hydroelectric dams contributing one- third of all electricity production in Montana. The Gibson Dam project…

John Cornyn
Sen. John CornynR-TX · Mar 2, 2017

Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

John Cornyn
Sen. John CornynR-TX · Mar 2, 2017

Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

Bill Text

Latest available legislative text

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Introduced in SenateIssued March 2, 2017

II

115th CONGRESS

1st Session

S. 492

IN THE SENATE OF THE UNITED STATES

March 2, 2017

Mr. Cornyn (for himself and Mr. Casey) 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 allow members of the Ready Reserve of a reserve component of the Armed Forces to make elective deferrals on the basis of their service to the Ready Reserve and on the basis of their other employment.

1.

Short title

This Act may be cited as the Servicemember Retirement Improvement Act.

2.

Elective deferrals by members of the Ready Reserve of a reserve component of the Armed Forces

(a)

In general

Section 402(g) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:

(9)

Elective deferrals by members of Ready Reserve

(A)

In general

In the case of a qualified ready reservist (other than a specified Federal employee ready reservist) for any taxable year, the limitations of subparagraphs (A) and (C) of paragraph (1) shall be applied separately with respect to—

(i)

elective deferrals of such qualified ready reservist with respect to the Thrift Savings Fund (as defined in section 7701(j)), and

(ii)

any other elective deferrals of such qualified ready reservist.

(B)

Special rule for Federal employees in the Ready Reserve not eligible to make elective deferrals to a plan other than the Thrift Savings Plan

In the case of a specified Federal employee ready reservist for any taxable year—

(i)

the applicable dollar amount in effect under paragraph (1)(B) for such taxable year shall be twice such amount (as determined without regard to this subclause), and

(ii)

for purposes of paragraph (1)(C), the applicable dollar amount under section 414(v)(2)(B)(i) (as otherwise determined for purposes of paragraph (1)(C)) shall be twice such amount (as determined without regard to this subclause).

(C)

Definitions

For purposes of this paragraph—

(i)

Qualified ready reservist

The term qualified ready reservist means any individual for any taxable year if such individual received compensation for service as a member of the Ready Reserve of a reserve component (as defined in section 101 of title 37, United States Code) during such taxable year.

(ii)

Specified Federal employee ready reservist

The term specified Federal employee ready reservist means any individual for any taxable year if such individual—

(I)

is a qualified ready reservist for such taxable year,

(II)

would be eligible to make elective deferrals with respect to the Thrift Savings Fund (as defined in section 7701(j)) during such taxable year determined without regard to the service of such individual described in clause (i), and

(III)

is not eligible to make elective deferrals with respect to any plan other than such Thrift Savings Fund during 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.