Library / Laws / 113th / hr / H.R. 205 / Introduced in House
I
113th CONGRESS
1st Session
H. R. 205
IN THE HOUSE OF REPRESENTATIVES
January 4, 2013
Ms. Loretta Sanchez of
California 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 clarify the
treatment of certain retirement plan contributions picked up by governmental
employers.
1.
Clarification of treatment of
certain retirement plan contributions picked up by governmental
employers
(a)
In
general
Paragraph (2) of
section 414(h) of the Internal Revenue Code of 1986 is amended—
(1) by striking
For purposes of paragraph (1) and inserting the
following:
(A)
In
general
For purposes of
paragraph (1)
,
and
(2) by adding at the
end the following new subparagraph:
(B)
Treatment of
elections between alternative benefit formulas
(i)
In
general
For purposes of
subparagraph (A), a contribution shall not fail to be treated as picked up by
an employing unit merely because the employee may make an irrevocable election
between the application of two alternative benefit formulas involving the same
or different levels of employee contributions.
(ii)
Application to
existing employees
Clause (i) shall be applied without regard to
whether the employee is already covered by one of the benefit formulas referred
to
therein.
.
(b)
Effective
date
The amendment made by this section shall apply to years
ending after the date of the enactment of this Act.