SAVERS Act

I 116TH CONGRESS 2D SESSION H. R. 6562 To suspend the contribution limitations for certain tax-preferred retirement accounts. IN THE HOUSE OF REPRESENTATIVES APRIL 21, 2020 Mr. MCHENRY introduced the following bill; which was referred to the Committee on Ways and Means A BILL To suspend the contribution limitations for certain tax- preferred retirement accounts. 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 ‘‘Securing Additional 4 Value for Every Retirement Saver Act’’ or the ‘‘SAVERS 5 Act’’. 6 SEC. 2. SUSPENSION OF CONTRIBUTION LIMITATIONS FOR 7 TAX-PREFERRED ACCOUNTS. 8 (a) DEFINED CONTRIBUTION PLANS.— 9 VerDate Sep 11 2014 19:17 Apr 23, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H6562.IH H6562 pamtmann on DSKBC07HB2PROD with BILLS 2 •HR 6562 IH (1) AGGREGATE ANNUAL ADDITIONS.—The an- 1 nual addition limitation under section 415(c)(1) of 2 the Internal Revenue Code of 1986 (and any con- 3 tribution limitation made applicable by reference to 4 subparagraph (A) thereof) for calendar year 2020, 5 or any taxable years beginning during 2020, as the 6 case may be, shall be an amount equal to the lesser 7 of— 8 (A) 300 percent of the amount otherwise 9 in effect under such subparagraph for such cal- 10 endar or taxable year (determined without re- 11 gard to this paragraph), or 12 (B) an amount equal to the employee’s 13 compensation. 14 (2) ELECTIVE DEFERRALS.—The applicable 15 dollar amount for elective deferrals under section 16 402(g) of such Code for any taxable year beginning 17 during 2020, and any dollar limitation determined 18 by reference thereto, shall not be less than an 19 amount equal to the lesser of— 20 (A) 300 percent of the amount otherwise 21 in effect for the taxable year (determined with- 22 out regard to this paragraph), or 23 VerDate Sep 11 2014 19:17 Apr 23, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H6562.IH H6562 pamtmann on DSKBC07HB2PROD with BILLS 3 •HR 6562 IH (B) the individual’s compensation from the 1 employer to which the plan relates for any tax- 2 able year beginning on 2020. 3 (3) 457 PLANS.—The maximum amount which 4 may be deferred for a taxable year beginning in 5 2020 under an eligible deferred compensation plan 6 (as defined in subsection (b) of section 457 of such 7 Code) shall not be less than an amount equal to the 8 lesser of— 9 (A) 300 percent of the amount otherwise 10 in effect for the taxable year under subsection 11 (e)(15) thereof (determined without regard to 12 this paragraph), or 13 (B) an amount equal to the participant’s 14 includible compensation (as defined in sub- 15 section (e)(5) thereof) for the taxable year. 16 (b) INDIVIDUAL RETIREMENT ACCOUNTS.— 17 (1) IN GENERAL.—For purposes of taxable 18 years beginning in 2020, the limitation in effect 19 under section 219(b)(1) of such Code (and any limi- 20 tation determined by reference to subparagraph (A) 21 thereof) shall not be less than an amount equal to 22 the lesser of— 23 (A) 300 percent of the amount otherwise 24 in effect under such subparagraph for the tax- 25 VerDate Sep 11 2014 19:17 Apr 23, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H6562.IH H6562 pamtmann on DSKBC07HB2PROD with BILLS 4 •HR 6562 IH able year (determined without regard to this 1 paragraph), or 2 (B) an amount equal to the compensation 3 includible in the individual’s gross income for 4 such taxable year. 5 (2) SIMPLE RETIREMENT ACCOUNTS.—In the 6 case of elective employer contributions to a simple 7 retirement account (as defined in section 408(p) of 8 such Code) for 2020, the applicable dollar amount 9 under paragraph (2)(E) thereof shall not be less 10 than an amount equal to the lesser of— 11 (A) 300 percent of the amount otherwise 12 in effect under such paragraph for the year (de- 13 termined without regard to this paragraph), or 14 (B) the employee’s compensation. 15 (c) COMPENSATION.— 16 (1) IN GENERAL.—Except as otherwise defined 17 for purposes of the provision to which one of the 18 preceding subsections relates, the term ‘‘compensa- 19 tion’’ for purposes of this section shall have the 20 meaning given such term in section 219 of such 21 Code. 22 (2) ELECTION TO SUBSTITUTE 2019 COM- 23 PENSATION.—For purposes of determining the 24 amount of an individual’s compensation under sub- 25 VerDate Sep 11 2014 19:17 Apr 23, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H6562.IH H6562 pamtmann on DSKBC07HB2PROD with BILLS 5 •HR 6562 IH sections (a) and (b), in lieu of compensation for 1 2020 or taxable years beginning in 2020, individuals 2 may elect to use compensation for 2019 or taxable 3 years beginning 2019. 4 Æ VerDate Sep 11 2014 19:17 Apr 23, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6301 E:\BILLS\H6562.IH H6562 pamtmann on DSKBC07HB2PROD with BILLS