Savings of Income for Retirement Act

Summary

Savings of Income for Retirement Act - Amends the Internal Revenue Code to increase the amount of the deduction for contributions to an individual retirement savings account (IRA): (1) by individuals to the lesser of 20 percent (currently 15 percent) of annual compensation or $2,000 (currently $1,500), adjustable annually for increases in the Consumer Price Index; and (2) by certain married individuals to the lesser of 20 percent (currently 15 percent) of annual compensation or $2,400 (currently $1,750), adjustable annually for increases in the Consumer Price Index. Increases the amount of the deduction for contributions to an owner-employee retirement plan (Keogh) by a self-employed individual to the lesser of 20 percent (currently 15 percent) of annual earned income or $10,000 (currently $7,500), adjustable annually for increases in the Consumer Price Index, but only after the deductible amount for an individual's contributions to an IRA has reached $5,000. Allows a new income tax deduction for amounts paid in cash by an individual for his own benefit to: (1) a qualified pension, profit-sharing, or stock bonus plan; (2) an annuity plan; (3) a qualified bond purchase plan; (4) an individual retirement account (IRA), or a retirement bond; or (5) a group retirement trust. Limits the amount of such deduction to the lesser of ten percent of annual compensation or $1,000. Places limitations on such deduction for amounts paid to certain IRA accounts, retirement annuities, or bonds. Denies such deduction to any individual claiming a deduction for such contributions under certain existing Code provisions. Denies such deduction to any highly compensated participant unless the employer certifies that specified discrimination standards have been met.

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1 official file

• Introduced in House

  summary · EN · 19 December 1979

  Open at official source

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