Amends title II (Old Age, Survivors and Disability Insurance) of the Social Security Act to repeal the limitation on the amount of outside income which beneficiaries who have attained retirement age may earn (earnings test) without incurring a reduction in benefits.
Amends the IRC to provide for a graduated increase in age from calendar year 2000 to 2014 and thereafter for required distributions from qualified trusts.
[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 2180 Introduced in Senate (IS)]
106th CONGRESS
2d Session
S. 2180
To repeal the increase in the tax on social security benefits, to
eliminate the earnings test for individuals who have attained
retirement age, and to gradually raise the age for required minimum
distributions from pension plans, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 2, 2000
Mr. Abraham introduced the following bill; which was read twice and
referred to the Committee on Finance
_______________________________________________________________________
A BILL
To repeal the increase in the tax on social security benefits, to
eliminate the earnings test for individuals who have attained
retirement age, and to gradually raise the age for required minimum
distributions from pension plans, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Senior Citizens' Financial Freedom
Act''.
SEC. 2. REPEAL OF INCREASE IN TAX ON SOCIAL SECURITY BENEFITS.
(a) In General.--Paragraph (2) of section 86(a) of the Internal
Revenue Code of 1986 (relating to social security and tier 1 railroad
retirement benefits) is amended by adding at the end the following new
flush sentence:
``This paragraph shall not apply to any taxable year beginning
after December 31, 2000.''
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2000.
SEC. 3. ELIMINATION OF EARNINGS TEST FOR INDIVIDUALS WHO HAVE ATTAINED
RETIREMENT AGE.
(a) In General.--Section 203 of the Social Security Act (42 U.S.C.
403) is amended--
(1) in subsection (c)(1), by striking ``the age of
seventy'' and inserting ``retirement age (as defined in section
216(l))'';
(2) in paragraphs (1)(A) and (2) of subsection (d), by
striking ``the age of seventy'' each place it appears and
inserting ``retirement age (as defined in section 216(l))'';
(3) in subsection (f)(1)(B), by striking ``was age seventy
or over'' and inserting ``was at or above retirement age (as
defined in section 216(l))'';
(4) in subsection (f)(3)--
(A) by striking ``33\1/3\ percent'' and all that
follows through ``any other individual,'' and inserting
``50 percent of such individual's earnings for such
year in excess of the product of the exempt amount as
determined under paragraph (8),''; and
(B) by striking ``age 70'' and inserting
``retirement age (as defined in section 216(l))'';
(5) in subsection (h)(1)(A), by striking ``age 70'' each
place it appears and inserting ``retirement age (as defined in
section 216(l))''; and
(6) in subsection (j)--
(A) in the heading, by striking ``Age Seventy'' and
inserting ``Retirement Age''; and
(B) by striking ``seventy years of age'' and
inserting ``having attained retirement age (as defined
in section 216(l))''.
(b) Conforming Amendments Eliminating the Special Exempt Amount for
Individuals Who Have Attained Retirement Age.--
(1) Uniform exempt amount.--Section 203(f)(8)(A) of the
Social Security Act (42 U.S.C. 403(f)(8)(A)) is amended by
striking ``the new exempt amounts (separately stated for
individuals described in subparagraph (D) and for other
individuals) which are to be applicable'' and inserting ``a new
exempt amount which shall be applicable''.
(2) Conforming amendments.--Section 203(f)(8)(B) of such
Act (42 U.S.C. 403(f)(8)(B)) is amended--
(A) in the matter preceding clause (i), by striking
``Except'' and all that follows through ``whichever''
and inserting ``The exempt amount which is applicable
for each month of a particular taxable year shall be
whichever'';
(B) in clauses (i) and (ii), by striking
``corresponding'' each place it appears; and
(C) in the last sentence, by striking ``an exempt
amount'' and inserting ``the exempt amount''.
(3) Repeal of basis for computation of special exempt
amount.--Section 203(f)(8)(D) of such Act (42 U.S.C. (f)(8)(D))
is repealed.
(c) Additional Conforming Amendments.--
(1) Elimination of redundant references to retirement
age.--Section 203 of the Social Security Act (42 U.S.C. 403) is
amended--
(A) in subsection (c), in the last sentence, by
striking ``nor shall any deduction'' and all that
follows and inserting ``nor shall any deduction be made under this
subsection from any widow's or widower's insurance benefit if the
widow, surviving divorced wife, widower, or surviving divorced husband
involved became entitled to such benefit prior to attaining age 60.'';
and
(B) in subsection (f)(1), by striking clause (D)
and inserting the following: ``(D) for which such
individual is entitled to widow's or widower's
insurance benefits if such individual became so
entitled prior to attaining age 60,''.
(2) Conforming amendment to provisions for determining
amount of increase on account of delayed retirement.--Section
202(w)(2)(B)(ii) of such Act (42 U.S.C. 402(w)(2)(B)(ii)) is
amended--
(A) by striking ``either''; and
(B) by striking ``or suffered deductions under
section 203(b) or 203(c) in amounts equal to the amount
of such benefit''.
(3) Provisions relating to earnings taken into account in
determining substantial gainful activity of blind
individuals.--The second sentence of section 223(d)(4)(A) of
the Social Security Act (42 U.S.C. 423(d)(4)(A)) is amended by
striking ``if section 102 of the Senior Citizens' Right to Work
Act of 1996 had not been enacted'' and inserting the following:
``if the amendments to section 203 made by section 102 of the
Senior Citizens' Right to Work Act of 1996 and by the Senior
Citizens' Financial Freedom Act had not been enacted''.
(d) Effective Date.--The amendments and repeals made by this
section shall apply with respect to taxable years ending after December
31, 2000.
SEC. 4. GRADUAL INCREASE IN AGE FOR REQUIRED MINIMUM DISTRIBUTIONS FROM
PENSION PLANS.
(a) In General.--Section 401(a)(9)(C) of the Internal Revenue Code
of 1986 (defining required beginning date) is amended--
(1) by striking ``age 70\1/2\'' and inserting ``the
applicable age'', and
(2) by adding at the end the following new clause:
``(v) Applicable age.--For purposes of this
subparagraph, the applicable age shall be
determined in accordance with the following
table:
Applicable
``Calendar year: Age:
2000.......................................... 71
2001.......................................... 72
2002.......................................... 73
2003.......................................... 74
2004.......................................... 75
2005.......................................... 76
2006.......................................... 77
2007.......................................... 78
2008.......................................... 79
2009.......................................... 80
2010.......................................... 81
2011.......................................... 82
2012.......................................... 83
2013.......................................... 84
2014 and thereafter........................... 85.''
(b) Effective Date.--The amendments made by this section shall
apply to years beginning after December 31, 1999.
<all>
Introduced in Senate
Sponsor introductory remarks on measure. (CR S1126-1127)
Read twice and referred to the Committee on Finance.
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