To amend the Internal Revenue Code of 1986 to increase the catch-up contribution limit for retirement plans of participants age 62 through 64.

I 117TH CONGRESS 1ST SESSION H. R. 2942 To amend the Internal Revenue Code of 1986 to increase the catch-up contribution limit for retirement plans of participants age 62 through 64. IN THE HOUSE OF REPRESENTATIVES APRIL 30, 2021 Mr. SCHWEIKERT 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 increase the catch-up contribution limit for retirement plans of participants age 62 through 64. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. HIGHER CATCH-UP LIMIT TO APPLY AT AGE 62, 3 63, AND 64. 4 (a) IN GENERAL.— 5 (1) PLANS OTHER THAN SIMPLE PLANS.—Sec- 6 tion 414(v)(2)(B)(i) of the Internal Revenue Code of 7 1986 is amended by inserting the following before 8 the period: ‘‘($10,000, in the case of an eligible par- 9 VerDate Sep 11 2014 05:10 Jun 09, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H2942.IH H2942 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 2942 IH ticipant who has attained age 62, but not age 65, 1 before the close of the taxable year)’’. 2 (2) SIMPLE PLANS.—Section 414(v)(2)(B)(ii) of 3 such Code is amended by inserting the following be- 4 fore the period: ‘‘($5,000, in the case of an eligible 5 participant who has attained age 62, but not age 65, 6 before the close of the taxable year)’’. 7 (b) COST-OF-LIVING ADJUSTMENTS.—Subparagraph 8 (C) of section 414(v)(2) of such Code is amended by add- 9 ing at the end the following: ‘‘In the case of a year begin- 10 ning after December 31, 2022, the Secretary shall adjust 11 annually the $10,000 amount in subparagraph (B)(i) and 12 the $5,000 amount in subparagraph (B)(ii) for increases 13 in the cost-of-living at the same time and in the same 14 manner as adjustments under the preceding sentence; ex- 15 cept that the base period taken into account shall be the 16 calendar quarter beginning July 1, 2021.’’. 17 (c) EFFECTIVE DATE.—The amendments made by 18 this section shall apply to years beginning after December 19 31, 2022. 20 Æ VerDate Sep 11 2014 05:10 Jun 09, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6301 E:\BILLS\H2942.IH H2942 kjohnson on DSK79L0C42PROD with BILLS