Servicemember Retirement Improvement Act

I 116TH CONGRESS 1ST SESSION H. R. 905 To amend the Internal Revenue Code of 1986 to allow members of the Ready Reserve of a reserve component of the Armed Forces to make elective deferrals on the basis of their service to the Ready Reserve and on the basis of their other employment. IN THE HOUSE OF REPRESENTATIVES JANUARY 30, 2019 Mr. KING of New York (for himself, Mr. JONES, Ms. STEFANIK, Mr. CAL- VERT, Mr. RYAN, Mr. DAVID P. ROE of Tennessee, Mr. COLE, Mr. WIL- SON of South Carolina, and Mr. HILL of Arkansas) introduced the fol- lowing bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to allow mem- bers of the Ready Reserve of a reserve component of the Armed Forces to make elective deferrals on the basis of their service to the Ready Reserve and on the basis of their other employment. 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 ‘‘Servicemember Retire- 4 ment Improvement Act’’. 5 VerDate Sep 11 2014 04:30 Feb 09, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H905.IH H905 kjohnson on DSK79L0C42 with BILLS 2 •HR 905 IH SEC. 2. ELECTIVE DEFERRALS BY MEMBERS OF THE READY 1 RESERVE OF A RESERVE COMPONENT OF 2 THE ARMED FORCES. 3 (a) IN GENERAL.—Section 402(g) of the Internal 4 Revenue Code of 1986 is amended by adding at the end 5 the following new paragraph: 6 ‘‘(9) ELECTIVE DEFERRALS BY MEMBERS OF 7 READY RESERVE.— 8 ‘‘(A) IN GENERAL.—In the case of a quali- 9 fied ready reservist (other than a specified Fed- 10 eral employee ready reservist) for any taxable 11 year, the limitations of subparagraphs (A) and 12 (C) of paragraph (1) shall be applied separately 13 with respect to— 14 ‘‘(i) elective deferrals of such qualified 15 ready reservist with respect to the Thrift 16 Savings Fund (as defined in section 17 7701(j)), and 18 ‘‘(ii) any other elective deferrals of 19 such qualified ready reservist. 20 ‘‘(B) SPECIAL RULE FOR FEDERAL EM- 21 PLOYEES IN THE READY RESERVE NOT ELIGI- 22 BLE TO MAKE ELECTIVE DEFERRALS TO A 23 PLAN OTHER THAN THE THRIFT SAVINGS 24 PLAN.—In the case of a specified Federal em- 25 ployee ready reservist for any taxable year— 26 VerDate Sep 11 2014 04:30 Feb 09, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H905.IH H905 kjohnson on DSK79L0C42 with BILLS 3 •HR 905 IH ‘‘(i) the applicable dollar amount in 1 effect under paragraph (1)(B) for such 2 taxable year shall be twice such amount 3 (as determined without regard to this sub- 4 clause), and 5 ‘‘(ii) for purposes of paragraph 6 (1)(C), the applicable dollar amount under 7 section 414(v)(2)(B)(i) (as otherwise deter- 8 mined for purposes of paragraph (1)(C)) 9 shall be twice such amount (as determined 10 without regard to this subclause). 11 ‘‘(C) DEFINITIONS.—For purposes of this 12 paragraph— 13 ‘‘(i) QUALIFIED READY RESERVIST.— 14 The term ‘qualified ready reservist’ means 15 any individual for any taxable year if such 16 individual received compensation for serv- 17 ice as a member of the Ready Reserve of 18 a reserve component (as defined in section 19 101 of title 37, United States Code) dur- 20 ing such taxable year. 21 ‘‘(ii) SPECIFIED FEDERAL EMPLOYEE 22 READY RESERVIST.—The term ‘specified 23 Federal employee ready reservist’ means 24 VerDate Sep 11 2014 04:30 Feb 09, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H905.IH H905 kjohnson on DSK79L0C42 with BILLS 4 •HR 905 IH any individual for any taxable year if such 1 individual— 2 ‘‘(I) is a qualified ready reservist 3 for such taxable year, 4 ‘‘(II) would be eligible to make 5 elective deferrals with respect to the 6 Thrift Savings Fund (as defined in 7 section 7701(j)) during such taxable 8 year determined without regard to the 9 service of such individual described in 10 clause (i), and 11 ‘‘(III) is not eligible to make elec- 12 tive deferrals with respect to any plan 13 other than such Thrift Savings Fund 14 during such taxable year.’’. 15 (b) EFFECTIVE DATE.—The amendment made by 16 this section shall apply to taxable years beginning after 17 the date of the enactment of this Act. 18 Æ VerDate Sep 11 2014 04:30 Feb 09, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 E:\BILLS\H905.IH H905 kjohnson on DSK79L0C42 with BILLS