H.R. 10 ~ Comprehensive Retirement Security and Pension ReformAct of 2001 Part 1
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Warning Read the Warning By Clicking on the word CLICK AN IMAGE OR READ Defined Contribution Plans ~ Elective Deferrals ~ SIMPLE Limits The text of this legislation has been spread over multiple web pages so the pages will load more quickly for you. The following are the links to each individual page of the act.
H.R.10
To provide for pension reform, and for other purposes. HR 10 EH
SECTION 1. SHORT TITLE; REFERENCES; TABLE OF CONTENTS.
TITLE I--INDIVIDUAL RETIREMENT ACCOUNT PROVISIONS
TITLE II--EXPANDING COVERAGE
TITLE III--ENHANCING FAIRNESS FOR WOMEN
TITLE IV--INCREASING PORTABILITY FOR PARTICIPANTS
TITLE V--STRENGTHENING PENSION SECURITY AND ENFORCEMENT
TITLE VI--REDUCING REGULATORY BURDENS
TITLE VII--OTHER ERISA PROVISIONS
TITLE VIII--PLAN AMENDMENTS
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- Help To Keep Your Life In Balance
| FOR TAXABLE YEARS BEGINNING IN CALENDAR YEAR | The "Applicable Dollar Amount" Is |
| 2002 | 3000 {if older than 50 5000} |
| 2003 | 4000 {if older than 50 5000} |
| 2004 | 5000 |
| After 12/31/2004 | COLA |
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`(B) CATCH-UP CONTRIBUTIONS FOR INDIVIDUALS 50 OR OLDER- In the
case of an individual who has attained the age of 50 before the
close of the taxable year, the deductible amount for taxable years
beginning in 2002 or 2003 shall be $5,000.
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`(C) COST-OF-LIVING ADJUSTMENT-
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`(i) IN GENERAL- In the case of any taxable year beginning in a
calendar year after 2004, the $5,000 amount under subparagraph
(A) shall be increased by an amount equal to--
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`(I) such dollar amount, multiplied by
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`(II) 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 2003' for
`calendar year 1992' in subparagraph (B) thereof.
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`(ii) ROUNDING RULES- If any amount after adjustment under
clause (i) is not a multiple of $500, such amount shall be
rounded to the next lower multiple of $500.'.
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(b) CONFORMING AMENDMENTS-
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(1) Section 408(a)(1) is amended by striking `in excess of $2,000 on
behalf of any individual' and inserting `on behalf of any individual
in excess of the amount in effect for such taxable year under
section 219(b)(1)(A)'.
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(2) Section 408(b)(2)(B) is amended by striking `$2,000' and
inserting `the dollar amount in effect under section 219(b)(1)(A)'.
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(3) Section 408(b) is amended by striking `$2,000' in the matter
following paragraph (4) and inserting `the dollar amount in effect
under section 219(b)(1)(A)'.
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(4) Section 408(j) is amended by striking `$2,000'.
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(5) Section 408(p)(8) is amended by striking `$2,000' and inserting
`the dollar amount in effect under section 219(b)(1)(A)'.
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(c) EFFECTIVE DATE- The amendments made by this section shall apply to
taxable years beginning after December 31, 2001.
TITLE II--EXPANDING COVERAGE
SEC. 201. INCREASE IN BENEFIT AND CONTRIBUTION LIMITS.
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(1) DOLLAR LIMIT-
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(A) Subparagraph (A) of section 415(b)(1) (relating to limitation
for defined benefit plans) is amended by striking `$90,000' and
inserting `$160,000'.
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(B) Subparagraphs (C) and (D) of section 415(b)(2) are each
amended by striking `$90,000' each place it appears in the
headings and the text and inserting `$160,000'.
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(C) Paragraph (7) of section 415(b) (relating to benefits under
certain collectively bargained plans) is amended by striking `the
greater of $68,212 or one-half the amount otherwise applicable for
such year under paragraph (1)(A) for `$90,000' and inserting
`one-half the amount otherwise applicable for such year under
paragraph (1)(A) for `$160,000'.
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(2) LIMIT REDUCED WHEN BENEFIT BEGINS BEFORE AGE 62- Subparagraph
(C) of section 415(b)(2) is amended by striking `the social security
retirement age' each place it appears in the heading and text and
inserting `age 62' and by striking the second sentence.
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(3) LIMIT INCREASED WHEN BENEFIT BEGINS AFTER AGE 65- Subparagraph
(D) of section 415(b)(2) is amended by striking `the social security
retirement age' each place it appears in the heading and text and
inserting `age 65'.
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(4) COST-OF-LIVING ADJUSTMENTS- Subsection (d) of section 415
(related to cost-of-living adjustments) is amended--
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(A) by striking `$90,000' in paragraph (1)(A) and inserting
`$160,000'; and
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(B) in paragraph (3)(A)--
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(i) by striking `$90,000' in the heading and inserting
`$160,000'; and
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(ii) by striking `October 1, 1986' and inserting `July 1, 2001'.
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(5) CONFORMING AMENDMENTS-
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(A) Section 415(b)(2) is amended by striking subparagraph (F).
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(B) Section 415(b)(9) is amended to read as follows:
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`(9) SPECIAL RULE FOR COMMERCIAL AIRLINE PILOTS-
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`(A) IN GENERAL- Except as provided in subparagraph (B), in the
case of any participant who is a commercial airline pilot, if, as
of the time of the participant's retirement, regulations
prescribed by the Federal Aviation Administration require an
individual to separate from service as a commercial airline pilot
after attaining any age occurring on or after age 60 and before
age 62, paragraph (2)(C) shall be applied by substituting such age
for age 62.
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`(B) INDIVIDUALS WHO SEPARATE FROM SERVICE BEFORE AGE 60- If a
participant described in subparagraph (A) separates from service
before age 60, the rules of paragraph (2)(C) shall apply.'.
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(C) Section 415(b)(10)(C)(i) is amended by striking `applied
without regard to paragraph (2)(F)'.
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(1) DOLLAR LIMIT- Subparagraph (A) of section 415(c)(1) (relating to
limitation for defined contribution plans) is amended by striking
`$30,000' and inserting `$40,000'.
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(2) COST-OF-LIVING ADJUSTMENTS- Subsection (d) of section 415
(related to cost-of-living adjustments) is amended--
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(A) by striking `$30,000' in paragraph (1)(C) and inserting
`$40,000'; and
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(B) in paragraph (3)(D)--
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(i) by striking `$30,000' in the heading and inserting
`$40,000'; and
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(ii) by striking `October 1, 1993' and inserting `July 1, 2001'.
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(c) QUALIFIED TRUSTS-
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(1) COMPENSATION LIMIT- Sections 401(a)(17), 404(l), 408(k), and
505(b)(7) are each amended by striking `$150,000' each place it
appears and inserting `$200,000'.
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(2) BASE PERIOD AND ROUNDING OF COST-OF-LIVING ADJUSTMENT-
Subparagraph (B) of section 401(a)(17) is amended--
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(A) by striking `October 1, 1993' and inserting `July 1, 2001';
and
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(B) by striking `$10,000' both places it appears and inserting
`$5,000'.
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(d) ELECTIVE DEFERRALS-
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(1) IN GENERAL- Paragraph (1) of section 402(g) (relating to
limitation on exclusion for elective deferrals) is amended to read
as follows:
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`(1) IN GENERAL-
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`(A) LIMITATION- Notwithstanding subsections (e)(3) and (h)(1)(B),
the elective deferrals of any individual for any taxable year
shall be included in such individual's gross income to the extent
the amount of such deferrals for the taxable year exceeds the
applicable dollar amount.
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`(B) APPLICABLE DOLLAR AMOUNT- For purposes of subparagraph (A),
the applicable dollar amount shall be the amount determined in
accordance with the following table:
| FOR TAXABLE YEARS BEGINNING IN CALENDAR YEAR | The "Applicable Dollar Amount" Is |
| 2002 | 11000 |
| 2003 | 12000 |
| 2004 | 13000 |
| 2005 | 14000 |
| 2006 | 15000 |
| After 12/31/2006 | COLA |
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(2) COST-OF-LIVING ADJUSTMENT- Paragraph (5) of section 402(g) is
amended to read as follows:
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`(5) COST-OF-LIVING ADJUSTMENT- In the case of taxable years
beginning after December 31, 2006, the Secretary shall adjust the
$15,000 amount under paragraph (1)(B) at the same time and in the
same manner as under section 415(d), except that the base period
shall be the calendar quarter beginning July 1, 2005, and any
increase under this paragraph which is not a multiple of $500 shall
be rounded to the next lowest multiple of $500.'.
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(3) CONFORMING AMENDMENTS-
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(A) Section 402(g) (relating to limitation on exclusion for
elective deferrals), as amended by paragraphs (1) and (2), is
further amended by striking paragraph (4) and redesignating
paragraphs (5), (6), (7), (8), and (9) as paragraphs (4), (5),
(6), (7), and (8), respectively.
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(B) Paragraph (2) of section 457(c) is amended by striking
`402(g)(8)(A)(iii)' and inserting `402(g)(7)(A)(iii)'.
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(C) Clause (iii) of section 501(c)(18)(D) is amended by striking
`(other than paragraph (4) thereof)'.
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(e) DEFERRED COMPENSATION PLANS OF STATE AND LOCAL GOVERNMENTS AND
TAX-EXEMPT ORGANIZATIONS-
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(1) IN GENERAL- Section 457 (relating to deferred compensation plans
of State and local governments and tax-exempt organizations) is
amended--
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(A) in subsections (b)(2)(A) and (c)(1) by striking `$7,500' each
place it appears and inserting `the applicable dollar amount'; and
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(B) in subsection (b)(3)(A) by striking `$15,000' and inserting
`twice the dollar amount in effect under subsection (b)(2)(A)'.
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(2) APPLICABLE DOLLAR AMOUNT; COST-OF-LIVING ADJUSTMENT- Paragraph
(15) of section 457(e) is amended to read as follows:
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`(15) APPLICABLE DOLLAR AMOUNT-
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`(A) IN GENERAL- The applicable dollar amount shall be the amount
determined in accordance with the following table:
| FOR TAXABLE YEARS BEGINNING IN CALENDAR YEAR | The "Applicable Dollar Amount" Is |
| 2002 | 11000 |
| 2003 | 12000 |
| 2004 | 13000 |
| 2005 | 14000 |
| 2006 | 15000 |
| After 12/31/2006 | COLA |
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`(B) COST-OF-LIVING ADJUSTMENTS- In the case of taxable years
beginning after December 31, 2006, the Secretary shall adjust the
$15,000 amount under subparagraph (A) at the same time and in the
same manner as under section 415(d), except that the base period
shall be the calendar quarter beginning July 1, 2005, and any
increase under this paragraph which is not a multiple of $500
shall be rounded to the next lowest multiple of $500.'.
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(f) SIMPLE RETIREMENT ACCOUNTS-
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(1) LIMITATION- Clause (ii) of section 408(p)(2)(A) (relating to
general rule for qualified salary reduction arrangement) is amended
by striking `$6,000' and inserting `the applicable dollar amount'.
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(2) APPLICABLE DOLLAR AMOUNT- Subparagraph (E) of 408(p)(2) is
amended to read as follows:
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`(E) APPLICABLE DOLLAR AMOUNT; COST-OF-LIVING ADJUSTMENT-
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`(i) IN GENERAL- For purposes of subparagraph (A)(ii), the
applicable dollar amount shall be the amount determined in
accordance with the following table:
| For taxable years beginning in calendar year: | The applicable dollar amount: | |
| 2002 | 7000 | |
| 2003 | 8000 | |
| 2004 | 9000 | |
| 2005 | 10000 | |
| After 2005 | COLA |
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`(ii) COST-OF-LIVING ADJUSTMENT- In the case of a year beginning
after December 31, 2005, the Secretary shall adjust the $10,000
amount under clause (i) at the same time and in the same manner
as under section 415(d), except that the base period taken into
account shall be the calendar quarter beginning July 1, 2004,
and any increase under this subparagraph which is not a multiple
of $500 shall be rounded to the next lower multiple of $500.'.
Solutions are dependent upon facts & circumstances, law and the objectives. These elements vary from one time to another, from one circumstance to another and from from person or entity to another
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