H.R. 4019 (109th): To amend title 4 of the United States Code to clarify the treatment of self-employment for purposes ...

...of the limitation on State taxation of retirement income.

109th Congress, 2005–2006. Text as of Oct 07, 2005 (Reported by House Committee).

Status & Summary | PDF | Source: GPO

IB

Union Calendar No. 304

109th CONGRESS

2d Session

H. R. 4019

[Report No. 109–542]

IN THE HOUSE OF REPRESENTATIVES

October 7, 2005

introduced the following bill; which was referred to the Committee on the Judiciary

June 29, 2006

Additional sponsors: Mr. English of Pennsylvania, Mr. Sessions, Mr. Keller, Mr. Feeney, Mr. Marchant, Mr. Chabot, Mr. Pence, Mr. Hensarling, Mr. Coble, Mr. Forbes, Mr. Baker, Mr. Boucher, Mr. Tanner, Mr. Matheson, Mr. Royce, Mr. Holden, Mr. Souder, Ms. Hart, Mr. Price of Georgia, Ms. Ginny Brown-Waite of Florida, Mr. Goodlatte, and Mr. Camp of Michigan

June 29, 2006

Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed

Strike out all after the enacting clause and insert the part printed in italic

A BILL

To amend title 4 of the United States Code to clarify the treatment of self-employment for purposes of the limitation on State taxation of retirement income.

1.

Clarification of treatment of self-employment for purposes of the limitation on state taxation of retirement income

(a)

In general

Section 114(b)(1)(i) of title 4, United States Code, is amended by—

(1)

inserting and any plan, program, or arrangement providing for retirement benefits to a retired partner (treated as such under applicable tax laws) after section 3121(v)(2)(C) of such Code,

(2)

inserting which may include income described in subparagraphs (A) through (H) after (not less frequently than annually, and

(3)

adding at the end the following: The fact that benefits may be adjusted from time to time pursuant to the plan to limit total disbursements under a predetermined formula, or to provide cost of living or similar adjustments, will not cause the period benefits provided under the plan to fail the substantially equal period payments test..

(b)

Application

The amendments made by this section apply to amounts received after December 31, 1995.

1.

Clarification of treatment of self-employment for purposes of the limitation on state taxation of retirement income

(a)

In general

Section 114(b)(1)(I) of title 4, United States Code, is amended—

(1)

by inserting (or any plan, program, or arrangement that is in writing, that provides for retirement payments in recognition of prior service to be made to a retired partner, and that is in effect immediately before retirement begins) after section 3121(v)(2)(C) of such Code,

(2)

by inserting which may include income described in subparagraphs (A) through (H) after (not less frequently than annually,

(3)

by adding at the end the following:

The fact that payments may be adjusted from time to time pursuant to such plan, program, or arrangement to limit total disbursements under a predetermined formula, or to provide cost of living or similar adjustments, will not cause the periodic payments provided under such plan, program, or arrangement to fail the substantially equal periodic payments test.

, and

(4)

by adding at the end the following:

(4)

For purposes of this section, the term retired partner is an individual who is described as a partner in section 7701(a)(2) of the Internal Revenue Code of 1986 and who is retired under such individual’s partnership agreement.

.

(b)

Application

The amendments made by this section apply to amounts received after December 31, 1995.

June 29, 2006

Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed