Omnibus Savings Incentive Act of 1981

Summary

Omnibus Savings Incentive Act of 1981 - Title I: Home Purchase Savings Account - Amends the Internal Revenue Code to allow individuals who are saving for their first home an income tax credit for cash contributions made during the taxable year to an individual housing account. Limits the amount of such credit to $2,500 for any taxable year and $10,000 during a lifetime. Sets forth requirements for the establishment of an individual housing account. Imposes penalties for distributions made from an individual housing account which are not used in connection with the purchase of a principal residence. Exempts interest earned on an individual housing account from income taxation. Requires the trustee of an individual housing account to make such reports regarding the maintenance of an account as the Secretary of the Treasury may require. Prohibits contributions to an individual housing account in excess of prescribed limits and imposes a tax on such excess contributions. Title II: Exclusions of Interest Received - Excludes from gross income up to $1,000 ($2,000 in the case of a married couple filing jointly) of interest earned on savings accounts, bonds, debentures and Federal, State or local obligations. Reduces the partial exclusion of dividends from $200 ($400 in the case of a married couple filing jointly) to $100 ($200 in the case of a married couple filing jointly). Amends the Crude Oil Windfall Profit Tax Act of 1980 to repeal the termination date of the partial exclusion of dividend and interest income. Title III: Individual Retirement Accounts - Increases to $2000 the amount of the income tax deduction for contributions to individual retirement accounts. Increases the amount of nondeductible contributions which an individual may make to an individual retirement account in a taxable year and over such individual's lifetime. Permits contributors to an individual retirement account to withdraw from such an account up to $10,000, without tax penalty, in order to purchase a first home or finance the higher education of a dependent child. Title IV: Compensation of Spouse as Bases for Retirement Savings Deductions - Allows a married individual whose compensation is less than his or her spouse to take a deduction for retirement savings based on the income of his or her spouse. Title V: Qualified Dividend Reinvestment Plans - Excludes from gross income a corporate stock distribution to a stockholder based upon the reinvestment of stock dividends in the corporation by such stockholder pursuant to his election to participate in a qualified dividend reinvestment plan, as defined in this Act. Limits the amount of such exclusion to $1,500 per year. Establishes a rebuttable presumption that a distribution made by a corporation which purchases its common stock within one year of such distribution shall not be deemed a distribution pursuant to a qualified dividend reinvestment plan.

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1 official file

• Introduced in House

  summary · EN · 4 June 1981

  Open at official source

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