II 117TH CONGRESS 1ST SESSION S. 1961 To amend the Internal Revenue Code of 1986 to increase IRA contribution limits for individuals without an employer retirement plan. 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 em- ployer retirement plan. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Increasing Retirement 4 Amount Act of 2021’’ or the ‘‘IRA Act of 2021’’. 5 VerDate Sep 11 2014 05:01 Jun 16, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S1961.IS S1961 kjohnson on DSK79L0C42PROD with BILLS 2 •S 1961 IS SEC. 2. INCREASE IN CONTRIBUTION LIMITS FOR INDIVID- 1 UALS WITHOUT AN EMPLOYER RETIREMENT 2 PLAN. 3 (a) IN GENERAL.—Section 219 of the Internal Rev- 4 enue Code of 1986 is amended by adding at the end the 5 following new subsection: 6 ‘‘(h) SPECIAL RULES FOR INDIVIDUALS WITHOUT AN 7 EMPLOYER PLAN.—For purposes of this section— 8 ‘‘(1) IN GENERAL.—In the case of an applicable 9 individual— 10 ‘‘(A) the deductible amount for purposes of 11 subsection (b)(1)(A) is $12,000, and 12 ‘‘(B) the applicable amount for purposes of 13 subsection (b)(5)(B)(i) is $3,000. 14 ‘‘(2) COST-OF-LIVING ADJUSTMENT.— 15 ‘‘(A) IN GENERAL.—In the case of any 16 taxable year beginning in a calendar year after 17 2022, the $12,000 amount under paragraph 18 (1)(A) shall be increased by an amount equal 19 to— 20 ‘‘(i) such dollar amount, multiplied by 21 ‘‘(ii) the cost-of-living adjustment de- 22 termined under section 1(f)(3) for the cal- 23 endar year in which the taxable year be- 24 gins, determined by substituting ‘calendar 25 VerDate Sep 11 2014 05:01 Jun 16, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S1961.IS S1961 kjohnson on DSK79L0C42PROD with BILLS 3 •S 1961 IS year 2021’ for ‘calendar year 2016’ in sub- 1 paragraph (A)(ii) thereof. 2 ‘‘(B) ROUNDING RULES.—If any amount 3 after adjustment under subparagraph (A) is not 4 a multiple of $500, such amount shall be 5 rounded to the next lower multiple of $500. 6 ‘‘(3) APPLICABLE INDIVIDUAL.—For purposes 7 of paragraph (1), the term ‘applicable individual’ 8 with respect to any taxable year means any indi- 9 vidual whose employer does not maintain a plan de- 10 scribed in any clause of subsection (g)(5)(A) for 11 such taxable year.’’. 12 (b) COORDINATION WITH KAY BAILEY HUTCHINSON 13 SPOUSAL IRA.—Subparagraph (A) of section 219(c)(1) of 14 the Internal Revenue Code of 1986 is amended by striking 15 ‘‘(b)(1)(A)’’ and inserting ‘‘(b)(1)(A) (determined without 16 regard to subsection (h))’’. 17 (c) EFFECTIVE DATE.—The amendments made by 18 this section shall apply to taxable years beginning after 19 December 31, 2021. 20 Æ VerDate Sep 11 2014 05:01 Jun 16, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\S1961.IS S1961 kjohnson on DSK79L0C42PROD with BILLS