< Back to S. 4 (107th Congress, 2001–2002)

Text of A bill to amend the Internal Revenue Code of 1986 to treat earnings on contributions to tax-deferred savings accounts as ...

...savings accounts as gain from the sale or exchange of a capital asset.

This bill was introduced on November 19, 2002, in a previous session of Congress, but was not enacted. The text of the bill below is as of Nov 19, 2002 (Introduced).

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Source: GPO

S 4 IS

107th CONGRESS

2d Session

S. 4

To amend the Internal Revenue Code of 1986 to treat earnings on contributions to tax-deferred savings accounts as gain from the sale or exchange of a capital asset.

IN THE SENATE OF THE UNITED STATES

November 19, 2002

Mr. GRAMM 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 treat earnings on contributions to tax-deferred savings accounts as gain from the sale or exchange of a capital asset.

    Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. TREATMENT OF EARNINGS ON CONTRIBUTIONS TO TAX-DEFERRED SAVINGS ACCOUNTS.

    (a) IN GENERAL- Part IV of subchapter P of chapter 1 of the Internal Revenue Code of 1986 (relating to special rules for determining capital gains and losses) is amended by adding at the end the following new section:

‘SEC. 1261. EARNINGS ON CONTRIBUTIONS TO TAX-DEFERRED SAVINGS ACCOUNTS.

    ‘(a) IN GENERAL- For purposes of this subtitle, net income allocable to any contribution to a plan which is includible in gross income under section 72 shall be treated as gain from the sale or exchange of a capital asset.

    ‘(b) PLAN- For purposes of this section, the term ‘plan’ has the meaning given such term by section 4975(e)(1).’.

    (b) CLERICAL AMENDMENT- The table of sections for part IV of subchapter P of chapter 1 of such Code is amended by adding after the item relating to section 1260 the following new item:

‘Sec. 1261. Earnings on contributions to tax-deferred savings accounts.’.

    (c) EFFECTIVE DATE- The amendments made by this section shall apply to amounts received in taxable years beginning after the date of the enactment of this Act.