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H.R. 905: Servicemember Retirement Improvement Act

The text of the bill below is as of Jan 30, 2019 (Introduced).


I

116th CONGRESS

1st Session

H. R. 905

IN THE HOUSE OF REPRESENTATIVES

January 30, 2019

(for himself, Mr. Jones, Ms. Stefanik, Mr. Calvert, Mr. Ryan, Mr. David P. Roe of Tennessee, Mr. Cole, Mr. Wilson of South Carolina, and Mr. Hill of Arkansas) 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 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.