II
117th CONGRESS
1st Session
S. 1961
IN THE SENATE OF THE UNITED STATES
June 7, 2021
Mr. Kennedy 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 increase IRA contribution limits for individuals without an employer retirement plan.
Short title
This Act may be cited as the Increasing Retirement Amount Act of 2021
or the IRA Act of 2021
.
Increase in contribution limits for individuals without an employer retirement plan
In general
Section 219 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:
Special rules for individuals without an employer plan
For purposes of this section—
In general
In the case of an applicable individual—
the deductible amount for purposes of subsection (b)(1)(A) is $12,000, and
the applicable amount for purposes of subsection (b)(5)(B)(i) is $3,000.
Cost-of-living adjustment
In general
In the case of any taxable year beginning in a calendar year after 2022, the $12,000 amount under paragraph (1)(A) shall be increased by an amount equal to—
such dollar amount, multiplied by
the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting calendar year 2021
for calendar year 2016
in subparagraph (A)(ii) thereof.
Rounding rules
If any amount after adjustment under subparagraph (A) is not a multiple of $500, such amount shall be rounded to the next lower multiple of $500.
Applicable individual
For purposes of paragraph (1), the term applicable individual with respect to any taxable year means any individual whose employer does not maintain a plan described in any clause of subsection (g)(5)(A) for such taxable year.
.
Coordination with Kay Bailey Hutchinson spousal IRA
Subparagraph (A) of section 219(c)(1) of the Internal Revenue Code of 1986 is amended by striking (b)(1)(A)
and inserting (b)(1)(A) (determined without regard to subsection (h))
.
Effective date
The amendments made by this section shall apply to taxable years beginning after December 31, 2021.
