,i #aai? ,,congress #b;d ,session ,h4 ,r4 #ihac ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,july #ba1 #bjbf,mr4 ,neal introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,ways & ,means ,a ,,bill ,to am5d ! ,int]nal ,rev5ue ,code ( #aihf to impose limitations on high-income taxpay]s ) l>ge retirem5t acc\nt balances4 #a4 ,contribution limit = individual retirem5t plans ( high-income taxpay]s ) l>ge acc\nt balances 7a7 ,contribution limit 7#a7 ,9 g5]al ,subp>t ,a ( "p ,i ( sub*apt] ,d ( *apt] #a ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+3 #dji;,b4 ,contribution limit on individual retirem5t plans ( high-income taxpay]s ) l>ge acc\nt balances 7a7 ,g5]al rule ,not)/&+ any o!r provision ( ?is title1 9 ! case ( an individual :o is an applicable taxpay] = any taxable ye>1 no applicable annual contributions = su* taxable ye> %all be made by1 or on behalf (1 su* individual to any individual retirem5t plan to ! ext5t su* applicable annual contributions exce$ ! excess 7if any7 (-- 7#a7 ! applicable doll> am\nt = su* taxable ye>1 ov] 7#b7 ! aggregate ve/$ balances to ! cr$it ( ! individual 7:e!r z a p>ticipant1 own]1 or b5efici>y7 9 all applicable retirem5t plans 7det]m9$ z ( ! close ( ! cal5d> ye> prec$+ ! cal5d> ye> 9 :i* su* taxable ye> beg9s74 7b7 ,def9itions & special rules ,= purposes ( ?is section-- 7#a7 ,applicable annual contribution 7,a7 ,9 g5]al ,except z provid$ 9 ?is p>agraph1 ! t]m applicable annual contribution means any contribution to an individual retirem5t plan4 7,b7 ,contributions to ,,sep & ,simple plans ,9 ! case ( any employ] or employee contributions by1 or on behalf (1 an individual to a simplifi$ employee p5sion "u section #djh7k7 or a simple retirem5t acc\nt "u section #djh7p7-- 7i7 su* contributions %all n be treat$ z applicable annual contributions = purposes ( apply+ ! limitation "u subsection 7a71 b 7ii7 ! excess describ$ 9 subsection 7a7 %all be r$uc$ by ! am\nt ( su* contributions 9 apply+ su* limitation to o!r applicable annual contributions ) respect to su* individual4 7,c7 ,rollov] contributions disreg>d$ ,a rollov] contribution "u section #djb7;c71 #djc7;a77#d71 #djc7;b77#h71 #djh7;d77#c71 #deg7;e77#af71 or #ebi7;c77#c77;,e7 %all n be treat$ z an applicable annual contribution4 7,d7 ,acc\nts acquir$ by dea? or divorce or sep>ation ,! acquisition ( an individual retirem5t plan 7or ! transf] to or contribution ( am\nts to an individual retirem5t plan7 by reason (-- 7i7 ! dea? ( ano!r individual1 or 7ii7 divorce or sep>ation 7pursuant to section #djh7;d77#f771 %all n be treat$ z an applicable annual contribution4 7#b7 ,applicable doll> am\nt ,! t]m applicable doll> am\nt means #aj1jjj1jjj4 7#c7 ,applicable retirem5t plan ,! t]m applicable retirem5t plan means-- 7,a7 a def9$ contribution plan to :i* section #dja7;a7 or #djc7;a7 applies1 7,b7 an annuity contract "u section #djc7;b71 7,c7 an eligible def]r$ comp5sation plan describ$ 9 section #deg7;b7 :i* is ma9ta9$ by an eligible employ] describ$ 9 section #deg7;e77#a77;,a71 or 7,d7 an individual retirem5t plan4 7#d7 ,applicable taxpay] 7,a7 ,9 g5]al ,! t]m applicable taxpay] means1 ) respect to any taxable ye>1 a taxpay] ^: modifi$ adju/$ gross income = ! prec$+ taxable ye> exce$s ! am\nt det]m9$ "u subp>agraph 7,b74 7,b7 ,doll> limit ,! am\nt det]m9$ "u ?is subp>agraph = any taxable ye> is-- 7i7 #bbe1jjj = a m>ri$ individual n fil+ a jo9t return1 7ii7 #dbe1jjj 9 ! case ( an individual :o is a head ( h\sehold 7z def9$ 9 section #b7;b771 7iii7 #dej1jjj 9 ! case ( an individual :o is a m>ri$ individual fil+ a jo9t return or a surviv+ sp\se 7z def9$ 9 section #b7;a771 & 7iv7 #djj1jjj 9 any o!r case4 7,c7 ,modifi$ adju/$ gross income ,= purposes ( ?is p>agraph1 ! t]m modifi$ adju/$ gross income means adju/$ gross income det]m9$ )\t reg>d to sections #iaa1 #ica1 & #icc1 )\t reg>d to any d$uction = applicable annual contributions to individual retirem5t plans to :i* subsection 7a7 applies1 & )\t reg>d to any increase 9 m9imum requir$ di/ributions by reason ( section #digd7;f74 7#e7 ,adju/m5ts = inflation 7,a7 ,9 g5]al ,9 ! case ( any taxable ye> beg9n+ aft] #bjbg1 ea* ( ! doll> am\nts 9 p>agraphs 7#b7 & 7#d77;,b7 %all be increas$ by an am\nt equal to ! product (-- 7i7 su* doll> am\nt1 & 7ii7 ! co/-(-liv+ adju/m5t "u section #a7;f77#c7 = ! cal5d> ye> 9 :i* su* taxable ye> beg9s1 det]m9$ by sub/itut+ cal5d> ye> #bjbf = cal5d> ye> #bjaf 9 subp>agraph 7,a77ii7 !re(4 7,b7 ,r\nd+ ,if any am\nt z adju/$ "u subp>agraph 7,a7 is n-- 7i7 9 ! case ( ! doll> am\nt "u p>agraph 7#b71 a multiple ( #bej1jjj1 su* am\nt %all be r\nd$ to ! next l[e/ multiple ( #bej1jjj1 & 7ii7 9 ! case ( a doll> am\nt "u p>agraph 7#d77;,b71 a multiple ( #a1jjj1 su* am\nt %all be r\nd$ to ! next l[e/ multiple ( #a1jjj4 7c7 ,regulations ,! ,secret>y %all prescribe su* regulations & guidance z are necess>y or appropriate to c>ry out ! purposes ( ?is section1 includ+ regulations or guidance t provide = ! application ( ?is section & section #digd7;f7 9 ! case ( plans ) a valuation date o!r ?an ! la/ day ( a cal5d> ye>4 4 7#b7 ,con=m+ am5dm5ts 7,a7 ,! table ( cont5ts = subp>t ,a ( "p ,i ( sub*apt] ,d ( *apt] #a ( su* ,code is am5d$ by add+ aft] ! item relat+ to section #dji;,a ! foll[+ new item3 ,sec4 #dji;,b4 ,contribution limit on individual retirem5t plans ( high-income taxpay]s ) l>ge acc\nt balances4 4 7,b7 ,section #djh7r7 ( su* ,code is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#c7 ,= additional limitations on contributions to individual retirem5t plans ) l>ge acc\nt balances1 see section #dji;,b4 4 7b7 ,excise tax on excess applicable annual contributions 7#a7 ,9 g5]al ,section #digc ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new subsection3 7i7 ,special rule = individual retirem5t plans ) excess applicable annual contributions ,= purposes ( ?is section1 9 ! case ( individual retirem5t plans1 ! excess contributions o!rwise det]m9$ "u ?is section ) respect to any taxable ye> %all be increas$ by ! sum (-- 7#a7 ! excess ( ! applicable annual contributions 7)9 ! mean+ ( section #dji;,b7b77#a77 to su* plans ov] ! limitation "u section #dji;,b7a7 = su* taxable ye>1 r$uc$ by ! am\nt ( any excess contributions det]m9$ "u subsections 7b7 & 7f71 & 7#b7 ! less] (-- 7,a7 ! am\nt det]m9$ "u ?is subsection = ! prec$+ taxable ye> ) respect to su* plans1 r$uc$ by ! aggregate di/ributions f su* plans = ! taxable ye> 7includ+ di/ributions requir$ "u section #digd7;f77 to ! ext5t n contribut$ 9 a rollov] contribution to ano!r eligible retirem5t plan 9 accordance ) section #djb7;c71 #djc7;a77#d71 #djc7;b77#h71 #djh7;d77#c71 & #deg7;e77#af71 or 7,b7 ! am\nt 7if any7 by :i* ! am\nt det]m9$ "u section #dji;,b7a77#b7 = ! taxable ye> exce$s ! applicable doll> am\nt "u section #dji;,b7b77#b7 = ! taxable ye>4 4 7#b7 ,con=m+ am5dm5ts ,subsections 7b7 & 7f7 ( section #digc ( su* ,code are ea* am5d$ by ins]t+ 1 except z fur!r provid$ 9 subsection 7i7 aft] ,= purposes ( ?is section4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjbf4 #b4 ,increase 9 m9imum requir$ di/ributions = high-income taxpay]s ) l>ge retirem5t acc\nt balances 7a7 ,9 g5]al ,section #digd ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new subsection3 7f7 ,increase 9 m9imum requir$ di/ributions = high-income taxpay]s ) l>ge aggregate acc\nt balances 7#a7 ,9 g5]al ,if ?is subsection applies to a payee :o is an applicable taxpay] 7z def9$ 9 section #dji;,b7b77#d77 = a taxable ye>-- 7,a7 all applicable retirem5t plans 7o!r ?an individual retirem5t acc\nts7 ( ! payee tak5 into acc\nt 9 comput+ ! excess describ$ 9 p>agraph 7#c77;,a7 %all be treat$ z #a plan solely = purposes ( apply+ ?is section to ! increase 9 m9imum requir$ di/ributions = su* taxable ye> det]m9$ "u subp>agraph 7,b71 & 7,b7 ! m9imum requir$ di/ributions "u ?is section = all plans treat$ z #a plan "u subp>agraph 7,a7 ) respect to su* payee = su* taxable ye> %all be increas$ by ! excess 7if any7 (-- 7i7 ! sum (-- 7,i7 if p>agraph 7#b7 applies to su* taxable ye>1 ! applicable ,ro? excess am\nt1 plus 7,,ii7 #ej p]c5t ( ! excess det]m9$ "u p>agraph 7#c77;,a71 r$uc$ by ! applicable ,ro? excess am\nt1 ov] 7ii7 ! sum ( ! m9imum requir$ di/ributions 7det]m9$ )\t reg>d to ?is subsection7 = all su* plans4 7#b7 ,applicable ,ro? excess am\nt 7,a7 ,application ,= purposes ( p>agraph 7#a77;,b77i71 ?is p>agraph applies to a taxable ye> ( a payee if ! aggregate ve/$ balances to ! cr$it ( ! payee 7:e!r z a p>ticipant1 own]1 or b5efici>y7 9 all applicable retirem5t plans 7det]m9$ z ( ! close ( ! cal5d> ye> prec$+ ! cal5d> ye> 9 :i* ! taxable ye> beg9s7 exce$ #bjj p]c5t ( ! applicable doll> am\nt = ! cal5d> ye> 9 :i* ! taxable ye> beg9s4 7,b7 ,applicable ,ro? excess am\nt ,! applicable ,ro? excess am\nt = any taxable ye> to :i* ?is p>agraph applies is an am\nt equal to ! less] (-- 7i7 ! excess det]m9$ "u subp>agraph 7,a71 or 7ii7 ! aggregate balances to ! cr$it ( ! payee 7:e!r z a p>ticipant1 own]1 or b5efici>y7 9 all ,ro? ,i,r,as & designat$ ,ro? acc\nts 7)9 ! mean+ ( section #djb;,a7 z ( ! close ( ! cal5d> ye> prec$+ ! cal5d> ye> 9 :i* ! taxable ye> beg9s4 7#c7 ,application ,?is subsection %all apply to a payee = a taxable ye>-- 7,a7 if ! aggregate ve/$ balances to ! cr$it ( ! payee 7:e!r z a p>ticipant1 own]1 or b5efici>y7 9 all applicable retirem5t plans 7det]m9$ z ( ! close ( ! cal5d> ye> prec$+ ! cal5d> ye> 9 :i* ! taxable ye> beg9s7 exce$ ! applicable doll> am\nt = ! cal5d> ye> 9 :i* ! taxable ye> beg9s1 & 7,b7 )\t reg>d to :e!r am\nts ) respect to ! payee are o!rwise requir$ to be di/ribut$ "u section #dja7;a77#i71 #djc7;b77#aj71 #djh7;a77#f71 #djh7;b77#c71 or #deg7;d77#b74 7#d7 ,coord9ation & allocation 7,a7 ,m9imum di/ribution requirem5ts ,if ?is subsection applies to a payee = any taxable ye>-- 7i7 ?is section %all apply fir/ to m9imum requir$ di/ributions det]m9$ )\t reg>d to ?is subsection & !n to any increase 9 m9imum requir$ di/ributions by reason ( ?is subsection1 & 7ii7 no?+ 9 ?is subsection %all be con/ru$ to affect ! am\nt ( any m9imum requir$ di/ribution det]m9$ )\t reg>d to ?is subsection or ! plan or plans f :i* x is requir$ to be di/ribut$4 7,b7 ,allocation ( increase 9 m9imum requir$ di/ributions 7i7 ,9 g5]al ,except z provid$ 9 clauses 7ii7 & 7iii71 ! taxpay] may1 9 su* =m & mann] z ! ,secret>y may prescribe1 allocate any increase 9 m9imum requir$ di/ributions by reason ( ?is subsection to applicable retirem5t plans treat$ z #a plan "u subp>agraph 7,a7 9 su* mann] z ! taxpay] *ooses4 7ii7 ,allocation to ,ro? ,i,r,as & acc\nts ,9 ! case ( a taxable ye> to :i* p>agraph 7#b7 applies1 ! portion ( any increase 9 m9imum requir$ di/ributions by reason ( ?is subsection equal to ! applicable ,ro? excess am\nt %all be allocat$ fir/ to ,ro? ,i,r,as & !n to designat$ ,ro? acc\nts 7)9 ! mean+ ( section #djb;,a7 ( ! payee4 7iii7 ,special rules = employee /ock own]%ip plans 7,i7 ,9 g5]al ,9 ! case ( a payee to :i* ?is subsection applies = any taxable ye> :o has acc\nt balances 9 #a or m employee /ock own]%ip plans 7z def9$ 9 section #dige7;e77#g77 any portion ( :i* is inve/$ 9 employ] securities :i* are n readily tradable on an e/abli%$ securities m>ket1 ! increase 9 m9imum requir$ di/ributions by reason ( ?is subsection %all n be allocat$ to any su* portion4 7,,ii7 ,exception = am\nts attributable to rollov] ,subclause 7,i7 %all n apply to s mu* ( any acc\nt balance z is attributable to a rollov] contribution aft] ! date ( ! enactm5t ( ?is subsection to ! acc\nt 9 accordance ) section #djb7;c71 #djc7;a77#d71 #djc7;b77#h71 #djh7;d77#c71 or #deg7;e77#af74 7#e7 ,di/ributions n eligible = rollov]s ,= purposes ( det]m9+ :e!r a di/ribution is an eligible rollov] di/ribution1 any di/ribution f an applicable retirem5t plan :i* is attributable to any increase 9 m9imum requir$ di/ributions by reason ( ?is subsection %all be treat$ z a di/ribution requir$ "u section #dja7;a77#i71 #djc7;b77#aj71 #djh7;a77#f71 #djh7;b77#c71 or #deg7;d77#b71 :i*ev] is applicable4 7#f7 ,ro? di/ributions treat$ z qualifi$ di/ributions ,9 ! case ( any di/ribution f a ,ro? ,,ira1 or designat$ ,ro? acc\nt 7)9 ! mean+ ( section #djb;,a71 ( ! payee by reason ( ! allocation ( an increase 9 m9imum requir$ di/ributions "u ?is subsection1 su* di/ribution %all be treat$ z a qualifi$ di/ribution "u section #djh;,a7d77#b7 or #djb;,a7d77#b71 z ! case may be4 7#g7 ,def9itions ,= purposes ( ?is subsection1 any t]m us$ 9 ?is subsection :i* is also us$ 9 section #dji;,b %all h ! same mean+ z :5 su* t]m is us$ 9 su* section4 4 7b7 ,special rules 7#a7 ,di/ribution rights 7,a7 ,qualifi$ tru/s 7i7 ,9 g5]al ,section #dja7;a7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by ins]t+ aft] p>agraph 7#ci7 ! foll[+ new p>agraph3 7#dj7 ,imm$iate di/ribution "r ,a tru/ =m+ "p ( a def9$ contribution plan %all n con/itute a qualifi$ tru/ "u ?is section unless an employee :o c]tifies to ! plan t ! employee is a taxpay] :o is subject to ! di/ribution requirem5ts ( section #digd7;f7 may elect to receive a di/ribution f ! employee's acc\nt balance "u ! plan 9 su* am\nt z ! employee may elect1 includ+ any am\nts attributable to a qualifi$ ca% or def]r$ arrangem5t 7z def9$ 9 subsection 7k77#b774 ,! prec$+ s5t5ce %all n apply 9 ! case ( any portion ( an acc\nt balance to :i* section #digd7;f77#d77;,b77iii77,i7 applies4 4 7ii7 ,application to employee's annuities ,section #djd7;a77#b7 ( su* ,code is am5d$ by /rik+ & 7#cg7 & ins]t+ 7#cg71 & 7#dj74 7,b7 ,annuity contracts 7i7 ,cu/odial acc\nts ,section #djc7;b77#g77;,a7 ( su* ,code is am5d$ by add+ at ! end ! foll[+ new flu% s5t5ce3 ,not)/&+ clause 7i71 ! cu/odial acc\nt %all p]mit an employee :o c]tifies t ! employee is a taxpay] :o is subject to ! di/ribution requirem5ts ( section #digd7;f7 to elect to receive a di/ribution f ! employee's cu/odial acc\nt 9 su* am\nt z ! employee may elect4 4 7ii7 ,annuity contracts ,section #djc7;b77#aa7 ( su* ,code is am5d$ by add+ at ! end ! foll[+ new s5t5ce3 ,not)/&+ subp>agraphs 7,a71 7,b71 7,c71 & 7,d71 ! annuity contract %all p]mit an employee :o c]tifies t ! employee is a taxpay] :o is subject to ! di/ribution requirem5ts ( section #digd7;f7 to elect to receive a di/ribution ( contributions made pursuant to a sal>y r$uction agreem5t 7)9 ! mean+ ( section #djb7;g77#c77 f ! employee's annuity contract 9 su* am\nt z ! employee may elect44 7,c7 ,gov]nm5tal plans ,section #deg7;d77#a7 ( su* ,code is am5d$ by add+ at ! end ! foll[+ new flu% s5t5ce3 ,not)/&+ subp>agraph 7,a71 an eligible def]r$ comp5sation plan ( an employ] describ$ 9 subsection 7e77#a77;,a7 %all p]mit a p>ticipant or b5efici>y :o c]tifies t ! p>ticipant or b5efici>y is a taxpay] :o is subject to ! di/ribution requirem5ts ( section #digd7;f7 to elect to receive a di/ribution f ! plan 9 su* am\nt z ! p>ticipant or b5efici>y may elect4 4 7#b7 ,exception f #aj p]c5t additional tax on e>ly di/ributions ,section #gb7t77#b7 ( su* ,code is am5d$ by add+ at ! end ! foll[+ new subp>agraph3 7,o7 ,di/ributions ( excess balances ,di/ributions f an applicable retirem5t plan 7)9 ! mean+ ( section #dji;,b77 to ! ext5t su* di/ributions = ! taxable ye> d n exce$ ! am\nt requir$ to be di/ribut$ f su* plan "u section #digd7;f74 4 7#c7 ,)hold+ ,section #cdje7;b7 ( su* ,code is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#c7 ,additional )hold+ = requir$ di/ributions f high balance retirem5t acc\nts 7,a7 ,9 g5]al ,= purposes ( ?is section1 a di/ribution pursuant to section #dja7;a77#dj71 ! la/ s5t5ce ( section #djc7;b77#g77;,a71 ! la/ s5t5ce ( section #djc7;b77#aa71 or ! la/ s5t5ce ( section #deg7;d77#a7 %all be treat$ z a nonp]iodic di/ribution1 except t 9 apply+ ?is subsection to su* di/ribution-- 7i7 p>agraph 7#a7 %all be appli$ by sub/itut+ #cg p]c5t = #aj p]c5t1 & 7ii7 no election may be made "u p>agraph 7#b7 ) respect to su* di/ribution4 7,b7 ,exception ,subp>agraph 7,a7 %all n apply to any qualifi$ di/ribution f a designat$ ,ro? acc\nt 7)9 ! mean+ ( section #djb;,a74 4 7c7 ,con=m+ am5dm5t ,section #digd7;b7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ section #dja7;a77#i7 & ins]t+ subsection 7f7 or section #dja7;a77#i74 7d7 ,effective dates 7#a7 ,9 g5]al ,! am5dm5ts made by subsection 7a7 %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjcc4 7#b7 ,plan requirem5ts ,! am5dm5ts made by subsection 7b7 %all apply to plan ye>s beg9n+ aft] ,decemb] #ca1 #bjcc4