Kids IRA Act of 2010 or the K-IRA Act - Amends the Internal Revenue Code to establish a tax-exempt individual retirement account for taxpayers under age 26, to be known as a young savers account. Treats such accounts as Roth individual retirement accounts for income tax purposes. Allows an income-based tax deduction for contributions to such accounts, up to $5,000 in any taxable year.
[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6321 Introduced in House (IH)]
111th CONGRESS
2d Session
H. R. 6321
To amend the Internal Revenue Code of 1986 to provide for tax preferred
savings accounts for individuals under age 26, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 29, 2010
Mr. Critz (for himself, Mr. Holden, Mr. Kanjorski, and Mr.
Westmoreland) 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 provide for tax preferred
savings accounts for individuals under age 26, 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 ``Kids IRA Act of 2010'' or the ``K-
IRA Act''.
SEC. 2. YOUNG SAVERS ACCOUNT.
(a) Establishment of Accounts.--
(1) In general.--Section 408A of the Internal Revenue Code
of 1986 (relating to Roth IRAs) is amended by adding at the end
the following new subsection:
``(g) Young Savers Account.--
``(1) In general.--Except as provided in this subsection, a
young savers account shall be treated in the same manner as a
Roth IRA.
``(2) Young savers account.--For purposes of this
subsection, the term `young savers account' means, with respect
to any taxable year, a Roth IRA which is established and
maintained on behalf of an individual who has not attained age
26 before the close of the taxable year.
``(3) Contribution limits.--In the case of any
contributions for any taxable year to 1 or more young savers
accounts established and maintained on behalf of an individual,
each of the following contribution limits for the taxable year
shall be increased as follows:
``(A) The contribution limit applicable to the
individual under subsection (c)(2) shall be increased
by the aggregate amount of qualified young saver
contributions to such accounts for the taxable year.
``(B) The contribution limits applicable to the
young savers accounts under subsection (a)(1) or
(b)(2)(B) of section 408, whichever is applicable,
shall be increased by the deductible amount in effect
under section 219(b)(5) for such taxable year
(determined without regard to subparagraph (B)
thereof).
``(4) Qualified contributions.--For purposes of this
subsection--
``(A) In general.--The term `qualified young saver
contribution' means a contribution by an individual
(with respect to whom a young savers account is not
established and maintained during the taxable year) to
a young savers account established and maintained on
behalf of another individual.
``(B) Limitations.--
``(i) Limit on accounts with respect to
individual.--The aggregate amount of
contributions which may be made for any taxable
year to all young savers accounts established
and maintained on behalf of an individual shall
not exceed the deductible amount in effect for
the taxable year under section 219(b)(5)
(determined without regard to subparagraph (B)
thereof).
``(ii) Limit on contributors.--The
aggregate amount of qualified contributions an
individual may make for any taxable year to all
young savers accounts shall not exceed the
deductible amount in effect for the taxable
year under section 219(b)(5) (determined
without regard to subparagraph (B) thereof).''.
(b) Partial Deductibility of Qualified Young Saver Contributions.--
Section 219 of such Code (relating to retirement savings) is amended by
adding at the end the following new subsection:
``(f) Qualified Young Saver Contributions.--
``(1) In general.--The amount allowable as a deduction
under this section (determined without regard to this
subsection) to any individual for any taxable year shall be
increased by an amount equal to 20 percent of so much of the
qualified young saver contributions (as defined in section
408A(g)) made by such individual for such taxable year as does
not exceed $5,000.
``(2) Limit based on modified adjusted gross income.--The
amount determined under paragraph (1) shall be reduced in the
same manner as under section 408A(c)(3)(A), except that the
applicable dollar amount shall be--
``(A) in the case of a taxpayer filing a joint
return, $315,000,
``(B) in the case of any other taxpayer (other than
a married individual filing a separate return),
$200,000, and
``(C) in the case of a married individual filing a
separate return, zero.
``(3) Inflation adjustment.--In the case of any taxable
year beginning in a calendar year after 2011, the dollar
amounts in subparagraphs (A) and (B) of paragraph (2) shall
each be increased by an amount equal to--
``(A) such dollar amount, multiplied by
``(B) the cost-of-living adjustment determined
under section 1(f)(3) for the calendar year in which
the taxable year begins, determined by substituting
`calendar year 2010' for `calendar year 1992' in
subparagraph (B) thereof.
Any increase determined under the preceding sentence shall be
rounded to the nearest multiple of $1,000.''.
(c) Conforming Amendment.--Paragraph (1) of section 408A(c) of such
Code (relating to no deduction allowed) is amended by striking ``No
deduction'' and inserting ``Except as provided in section 219(f), no
deduction''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2010.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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