Sec. 1602. No new contributions to traditional IRAs
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(1)of section 408(a) is amended by striking in excess of the amount and all that follows through the end and inserting the following: unless it is a contribution under a simplified employee pension described in subsection
(k)not in excess of the amount of the limitation in effect for such taxable year under section 415(c)(1)(A), a contribution to a simple retirement account described in subsection
(p)not in excess of the amount described in section 408(p)(8) for such taxable year, or a contribution to a Roth IRA described in section 408A not in excess of the amount in effect for the taxable year with respect to such individual under section 408A(c)(1)(A)(i). . Subparagraph
(B)of section 408(b)(2) is amended to read as follows: any amount paid as a premium on behalf of any individual for a taxable year would meet the requirements of subsection (a)(1) if it were paid as a contribution to an individual retirement account, and . The last sentence of section 408(b) is amended by striking the dollar amount in effect under section 219(b)(1)(A) and inserting the amounts described in paragraph (2)(B) . Section 219(a) is amended by striking equal to the qualified retirement contributions of the individual and inserting equal to the amounts contributed on behalf of the individual to a plan described in section 501(c)(18) . Section 219(b) is amended— by striking and all that follows through Maximum amount of deduction Notwithstanding paragraph (1), the amount allowable as a deduction and inserting , and Maximum amount of deduction. —The amount allowable as a deduction by striking paragraphs
(4)and (5). Section 219 is amended by striking subsections (c), (d), (e), (g), and
(h)and by redesignating subsection
(f)as subsection (c). Section 219(c), as so redesignated, is amended— by striking and inserting Other definitions and special rules , Special rules by striking paragraphs (1), (3), (4), (5), (6), (7), and (8), and by inserting before paragraph
(2)the following new paragraph: 70 1/2 No deduction shall be allowed under this section with respect to any amount contributed on behalf of an individual to a plan described in section 501(c)(18) if such individual has attained age 70 1/2 before the close of such individual’s taxable year for which the contribution was made. . Section 4973(b)(2)(C) is amended by striking (determined without regard to section 219(f)(6)) . Section 408A(c), as amended by this Act, is amended— by striking paragraphs
(1)and
(2)and inserting the following new paragraphs: The aggregate amount of contributions for any taxable year to all Roth IRAs maintained for the benefit of an individual shall not exceed the lesser of— $5,500, or an amount equal to the compensation includible in the individual’s gross income for such taxable year. 50 or older In the case of an individual who has attained the age of 50 before the close of the taxable year, the amount in effect under subparagraph (A)(i) for such taxable year shall be increased by $1,000. In the case of an individual to whom this paragraph applies for the taxable year, the limitation of paragraph
(1)shall be equal to the lesser of— the dollar amount in effect under paragraph (1)(A)(i) for the taxable year, or the sum of— the compensation includible in such individual’s gross income for the taxable year, plus the compensation includible in the gross income of such individual’s spouse for the taxable year reduced by— the amount allowed as a deduction under section 219(a) to such spouse for such taxable year, the amount of any contribution on behalf of such spouse to a Roth IRA for such taxable year.
(2)applies Paragraph
(2)shall apply to any individual if— such individual files a joint return for the taxable year, and the amount of compensation (if any) includible in such individual’s gross income for the taxable year is less than the compensation includible in the gross income of such individual's spouse for the taxable year. . by striking paragraph
(2)in paragraph
(6)and inserting paragraph
(1), by striking the rule of section 219(f)(3) shall apply in paragraph
(7)and inserting the following: a taxpayer shall be deemed to have made a contribution to a Roth IRA on the last day of the preceding taxable year if the contribution is made on account of such taxable year and is made not later than the time prescribed by law for filing the return for such taxable year (not including extensions thereof) , and by adding at the end the following new paragraphs: For purposes of this section, the term compensation includes earned income (as defined in section 401(c)(2)). The term compensation does not include any amount received as a pension or annuity and does not include any amount received as deferred compensation. For purposes of this paragraph, section 401(c)(2) shall be applied as if the term trade or business for purposes of section 1402 included service described in subsection (c)(6) thereof. The term compensation includes any differential wage payment (as defined in section 3401(h)(2)). The limitation under this subsection shall be computed separately for each individual, and this section shall be applied without regard to any community property laws. For purposes of paragraphs (1)(A)(ii) and (2), the amount of compensation includible in an individual’s gross income shall be determined without regard to section 112. . Section 408A(d)(3)(A) is amended— by inserting and at the end of clause (i), by striking , and at the end of clause
(ii)and inserting a period, by striking clause (iii), and by striking the last sentence. Section 408(d)(4) is amended— by striking subparagraph
(B)and inserting the following: in the case of simplified employee pension, such contribution is not excluded from gross income under section 402(h), . by adding at the end the following: This paragraph shall not apply to any contribution to a simple retirement account. . Section 408(d)(5)(A) is amended— by striking in effect under section 219(b)(1)(A) and inserting in effect with respect to the taxpayer for the taxable year under section 408A(c)(1)(A)(i) , by striking the amount allowable as a deduction and all that follows through such excess contribution. and inserting the amount that may be contributed under section 408A(c)(1) for the taxable year for which the contribution was made if such distribution is received after the date described in paragraph (4). , by adding at the end of subparagraph
(A)the following: This paragraph shall not apply to any contribution to a simple retirement account. , and by striking the last sentence. Section 408 is amended by striking subsection (o). Section 408(p)(2)(D)(ii) is amended by striking means a plan, contract and all that follows through the period at the end and inserting the following: means— a plan described in section 401(a) which includes a trust exempt from tax under section 501(a), an annuity plan described in section 403(a), an eligible deferred compensation plan (as defined in section 457(b)) of an eligible employer described in section 457(e)(1)(A)), an annuity contract described in section 403(b), a simplified employee pension (within the meaning of section 408(k)), any simple retirement account (within the meaning of section 408(p)), or a trust described in section 501(c)(18). . Section 408(p)(8) is amended to read as follows:
(a)In the case of a simple retirement account, for purposes of subsections (a)(1) and (b)(2), contributions may not exceed the sum of— the dollar amount in effect under paragraph (2)(A)(ii), and the employer contribution required under subparagraph (A)(iii) or (B)(i) of paragraph (2), whichever is applicable. . Section 408 is amended by striking subsection (j). Subsection
(b)of section 4973 is amended— by striking paragraph
(1)and inserting the following: the amounts contributed for the taxable year to the accounts or for the annuities or bonds (other than any contributions to a Roth IRA) which are not permitted contributions under subsection (a)(1) or (b)(2) of section 408, and . in paragraph (2)(C), by striking the maximum amount allowable and all that follows through without regard to section 219(f)(6)) and inserting the permitted contributions under subsection (a)(1) or (b)(2) of section 408 for the taxable year over the amount contributed , and by striking the last sentence and inserting the following: Paragraph
(2)shall be determined separately with respect to any simplified employee pension (within the meaning of section 408(k)) and any simple retirement account (within the meaning of section 408(p)). . Section 4973(f) is amended by striking sections 408A(c)(2) and (c)(3) each place it appears and inserting section 408A(c)(1) . Section 25B(d)(1)(A) is amended to read as follows: the amounts— paid in cash for the taxable year by or on behalf of an individual to all Roth IRAs maintained for such individual’s benefit, and contributed on behalf of the individual to a plan described in section 501(c)(18), . Section 86(f)(3) is amended by striking 219(f)(1) and inserting section 408A(c)(8) . Section 132(m)(3) is amended by striking section 219(g)(5) and inserting section 408(p)(2)(D)(ii) . Section 223(d) is amended— by redesignating paragraph
(4)as paragraph (7), by inserting after paragraph
(3)the following new paragraphs: No deduction shall be allowed under this section with respect to a rollover contribution described in subsection (f)(5). For purposes of this section, a taxpayer shall be deemed to have made a contribution to a health savings account on the last day of the preceding taxable year if the contribution is made on account of such taxable year and is made not later than the time prescribed by law for filing the return for such taxable year (not including extensions thereof). Except as provided in section 106(d), for purposes of this title, any amount paid by an employer to a health savings account shall be treated as payment of compensation to the employee (other than a self-employed individual who is an employee within the meaning of section 401(c)(1)) includible in his gross income in the taxable year for which the amount was contributed, whether or not a deduction for such payment is allowable under this section to the employee. . Section 223(d)(7), as so redesignated, is amended by striking subparagraphs (A), (B), and (C), and redesignating subparagraphs
(D)and
(E)as subparagraphs
(A)and (B), respectively. Section 409A(d)(2)(A) is amended by striking subparagraph
(A)or
(B)of section 219(g)(5) (without regard to subparagraph (A)(iii)) and inserting section 408(p)(2)(D)(ii) (without regard to subclause
(III)thereof) . Section 501(c)(18)(D)(i) is amended by striking section 219(b)(3) and inserting section 219(a) . Section 877A(d)(4)(A) is amended by striking section 219(g)(5) and inserting 408(p)(2)(D)(ii) . Section 6652 is amended by striking subsection (g). The amendments made by this section shall apply to taxable years beginning after December 31, 2014.