Omnibus Savings Incentives Tax Act of 1981

Summary

Omnibus Savings Incentives Tax Act of 1981 - Title I: Election of Income Tax Credit for Interest and Dividends Received by Individuals - Amends the Internal Revenue Code to allow individual taxpayers an income tax credit equal to 25 percent of their dividend and interest income for the taxable year. Limits the dollar amount of such credit to $250. Disallows such credit if the income tax exclusion for aggregate dividend and interest income is claimed. Title II: Increased Deduction for Contributions to Individual Retirement Plans and Allowance of Deduction for Employee Contributions to Employer Retirement Plans - Amends the Internal Revenue Code to increase the maximum allowable income tax deduction for contributions to individual retirement accounts (IRAs) to $2,000 or the total amount of the taxpayer's earned income, whichever is less. Allows an additional $2,000 deductible contribution for the taxpayer's spouse. Permits employee-participants in tax-qualified employer pension plans to make deductible contributions to such pension plans, up to the limits imposed upon contributions to IRAs. Reduces the allowable retirement savings deduction for an employee exempt from social security taxes by the amount of such taxes the employee would pay if subject to social security coverage. Allows total lifetime withdrawals from IRAs of $15,000 for higher education expenses of children or for purchase of a principal residence. Title III: Payment of Bonus Interest on Investments Held for 7 Years - Establishes bonus payments of 14 percent of the original principal for IRA contributions held for seven years by individuals with gross incomes under $12,000 ($18,000 for married couples). Limits such contributions to: (1) a minimum of $500 and a maximum of $1,000 per year for unmarried individuals; and (2) a minimum of $500 and a maximum of $2,000 for married couples.

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1 official file

• Introduced in House

  summary · EN · 1 April 1981

  Open at official source

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