A bill to amend section 403(B)(2) of the Internal Revenue Code of 1954 with respect to computation of the exclusion allowance for ministers and lay employees of a church; to add new section 430(B) annuity contract includes an annuity contract of a church, including a church pension board; to conform section 403(c) with recent amendments to 402(a)(1); to amend section 415(c)(4) to extend the special elections for section 430(b) annuity contracts to employees of churches or conventions or associations of churches and their agencies; to add a new section 415 (c)(8) to permit a de minimis contribution amount in lieu of such elections; and to make a clarifying amendment to section 415(c) by adding a new paragraph (9) and conforming amendments to sections 415(d)(1), 415(d)(2), and 403(b)(2)(B).

Summary

Amends the Internal Revenue Code to revise the tax treatment of church annuity plans. Extends to clergy and church employees the same election of alternative exclusion allowances for contributions to annuity contracts which is currently available to employees of tax-exempt health and education organizations. Treats all years of employment by clergy and church employees as employment for one employer for purposes of the employee exclusion allowance for contributions to a church annuity plan. Establishes a minimum level of compensation for clergy and church employees for purposes of computing the exclusion allowance for contributions to a church annuity plan. Specifies that such minimum level shall not be less than twice the nonfarm income poverty level of a family of four as determined by the Secretary of the Treasury. Defines "annuity contracts", for purposes of the employee exclusion, to include those provided by a church or church pension board. Prohibits the application of the constructive receipts doctrine to the computation of annuity amounts. Permits clergy or church employees to contribute up to $10,000 to a church annuity plan without exceeding statutory limitations on contributions to such plans. Provides for cost of living adjustments to such amount.

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Timeline

1. 4 December 1981

   Introduced

   Read second time and referred to Senate Committee on Finance.

   Source: IntroReferral

2. 4 December 1981

   Introduced

   Introduced in Senate

   Source: IntroReferral

3. 9 December 1981

   Committee

   Committee on Finance requested executive comment from OMB; Treasury Department.

   Source: Committee

4. 19 May 1982

   Committee

   Subcommittee on Savings, Pensions, and Investment. Hearings held.

   Source: Committee

Votes

No vote records are attached yet.

Versions

No version snapshots stored. Document URLs remain at the source.

Documents

1 official file

• Introduced in Senate

  summary · EN · 4 December 1981

  Open at official source

Sponsors

• Sen. Bentsen, Lloyd M. [D-TX] · D · Sponsor
• Sen. Dole, Robert J. [R-KS] · R · Sponsor
• Sen. Mitchell, George J. [D-ME] · D · Cosponsor
• Sen. Chafee, John H. [R-RI] · R · Cosponsor
• Sen. Hollings, Ernest F. [D-SC] · D · Cosponsor
• Sen. Heflin, Howell [D-AL] · D · Cosponsor
• · ssfi00 · Standing

Related records

• related to → A bill to amend sections 403(b)(2) and 403(b)(3) of the Internal Revenue Code of 1954 with respect to computation of the exclusion allowance for ministers and lay employees of a church; to add a new section 403(b)(9) to clarify that a section 403(b) annuity contract includes an annuity contract of a church, including a church pension board; to conform section 403(c) with recent amendments to section 402(a)(1); to amend section 415(c)(4) to extend the special elections for section 403(b) annuity contracts to employees of churches or conventions or associations of churches and their agencies; to add a new section 415(c)(8) to permit a de minimis contribution amount in lieu of such elections; and to make a clarifying amendment to section 415(c) by adding a new paragraph (9) and conforming amendments to sections 415(d)(1), 415(d)(2), and 403(b)(2)(B).