To amend the Internal Revenue Code of 1986 to permit an exemption of the first $10,000 of retirement income received by a taxpayer under a public retirement system or any other system if the taxpayer is at least 65 years of age.

Amends the Internal Revenue Code to exclude from gross income any annuities, pensions, or other retirement benefits received by individuals under a public retirement system and by other retirees aged 65 or older if total income from such sources (not including tax-excluded amounts) is $10,000 or less.

 
HR 396 IH
101st CONGRESS
1st Session
H. R. 396
To amend the Internal Revenue Code of 1986 to permit an exemption of the first
$10,000 of retirement income received by a taxpayer under a public retirement
system or any other system if the taxpayer is at least 65 years of age.
IN THE HOUSE OF REPRESENTATIVES
January 3, 1989
Mr. SOLOMON introduced the following bill; which was referred to the Committee
on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to permit an exemption of the first
$10,000 of retirement income received by a taxpayer under a public retirement
system or any other system if the taxpayer is at least 65 years of age.
  Be it enacted by the Senate and House of Representatives of the United
  States of America in Congress assembled,
  SECTION 1. (a) Part III of subchapter B of chapter 1 of the Internal Revenue
  Code of 1986 (relating to items specifically excluded from gross income)
  is amended by redesignating section 136 as section 137 and by inserting
  after section 135 the following new section:
`SEC. 136. PARTIAL EXCLUSION OF RETIREMENT BENEFITS.
  `(a) GENERAL RULE- Gross income does not include--
  `(1) any amounts received by an individual in the taxable year as a pension,
  annuity, or other benefit under a public retirement system, or
  `(2) any amounts received by an individual who is age 65 or over as a
  pension, annuity, or other retirement benefit under any other retirement
  plan, program, or system,
to the extent that the aggregate of such amounts (over and above any portion
thereof which is excluded from gross income under provisions of this chapter
other than this section) does not exceed $10,000.
  `(b) DEFINITION- As used in subsection (a), the term `public retirement
  system' means a pension, annuity, retirement, or similar fund or system
  established by the United States, a State, a territory, a possession of
  the United States, any political subdivision of any of the foregoing,
  or the District of Columbia.'
  (b) The table of sections of such part III is amended by striking out the
  last item and inserting in lieu thereof the following:
`Sec. 136. Partial exclusion of retirement benefits.
`Sec. 137. Cross references to other Acts.'
  SEC. 2. Section 72(v) of such Code (cross reference relating to annuities)
  is amended--
  (a) by striking out `REFERENCE' and inserting in lieu thereof `REFERENCES';
  and
  (b) by adding at the end thereof the following:
 `For partial exclusion of retirement benefits, see section 136.'
  SEC. 3. The amendments made by this section shall apply only with respect
  to taxable years beginning after the date of the enactment of this Act.