H. R. 6321
IN THE HOUSE OF REPRESENTATIVES
September 29, 2010
Mr. Critz (for himself, Mr. Holden, Mr. Kanjorski, and Mr. Westmoreland) introduced the following bill; which was referred to the Committee on Ways and Means
To amend the Internal Revenue Code of 1986 to provide for tax preferred savings accounts for individuals under age 26, and for other purposes.
This Act may be cited as the
Kids IRA Act of 2010 or the
Young savers account
Establishment of accounts
Section 408A of the Internal Revenue Code of 1986 (relating to Roth IRAs) is amended by adding at the end the following new subsection:
Young savers account
Except as provided in this subsection, a young savers account shall be treated in the same manner as a Roth IRA.
Young savers account
For purposes of this subsection, the term
savers account means, with respect to any taxable year, a Roth IRA
which is established and maintained on behalf of an individual who has not
attained age 26 before the close of the taxable year.
In the case of any contributions for any taxable year to 1 or more young savers accounts established and maintained on behalf of an individual, each of the following contribution limits for the taxable year shall be increased as follows:
The contribution limit applicable to the individual under subsection (c)(2) shall be increased by the aggregate amount of qualified young saver contributions to such accounts for the taxable year.
The contribution limits applicable to the young savers accounts under subsection (a)(1) or (b)(2)(B) of section 408, whichever is applicable, shall be increased by the deductible amount in effect under section 219(b)(5) for such taxable year (determined without regard to subparagraph (B) thereof).
For purposes of this subsection—
qualified young saver
contribution means a contribution by an individual (with respect to
whom a young savers account is not established and maintained during the
taxable year) to a young savers account established and maintained on behalf of
Limit on accounts with respect to individual
The aggregate amount of contributions which may be made for any taxable year to all young savers accounts established and maintained on behalf of an individual shall not exceed the deductible amount in effect for the taxable year under section 219(b)(5) (determined without regard to subparagraph (B) thereof).
Limit on contributors
The aggregate amount of qualified contributions an individual may make for any taxable year to all young savers accounts shall not exceed the deductible amount in effect for the taxable year under section 219(b)(5) (determined without regard to subparagraph (B) thereof).
Partial deductibility of qualified young saver contributions
Section 219 of such Code (relating to retirement savings) is amended by adding at the end the following new subsection:
Qualified young saver contributions
The amount allowable as a deduction under this section (determined without regard to this subsection) to any individual for any taxable year shall be increased by an amount equal to 20 percent of so much of the qualified young saver contributions (as defined in section 408A(g)) made by such individual for such taxable year as does not exceed $5,000.
Limit based on modified adjusted gross income
The amount determined under paragraph (1) shall be reduced in the same manner as under section 408A(c)(3)(A), except that the applicable dollar amount shall be—
in the case of a taxpayer filing a joint return, $315,000,
in the case of any other taxpayer (other than a married individual filing a separate return), $200,000, and
in the case of a married individual filing a separate return, zero.
In the case of any taxable year beginning in a calendar year after 2011, the dollar amounts in subparagraphs (A) and (B) of paragraph (2) shall each be increased by an amount equal to—
such dollar amount, multiplied by
adjustment determined under section 1(f)(3) for the calendar year in which the
taxable year begins, determined by substituting
calendar year 1992 in subparagraph (B) thereof.
Paragraph (1) of section 408A(c) of such Code (relating
to no deduction allowed) is amended by striking
No deduction and
Except as provided in section 219(f), no
The amendments made by this section shall apply to taxable years beginning after December 31, 2010.