To amend the Internal Revenue Code of 1986 to eliminate the marriage penalty in the contribution rules for Roth IRAs.

January 20, 2005

Mr. HEFLEY introduced the following bill; which was referred to the Committee on Ways and Means

To amend the Internal Revenue Code of 1986 to eliminate the marriage penalty in the contribution rules for Roth IRAs.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. ELIMINATION OF MARRIAGE PENALTY IN CONTRIBUTION RULES FOR ROTH IRAS.

(a) Phaseout Range- Clause (ii) of section 408A(c)(3)(A) of the Internal Revenue Code of 1986 (relating to dollar limit) is amended to read as follows:

`(ii) $15,000 ($30,000 in the case of a joint return).'.

(b) Phaseout Threshold- Clause (ii) of section 408A(c)(3)(C) of such Code is amended--

(1) in subclause (I)--

(A) by striking `$150,000' and inserting `$190,000', and

(B) by inserting `and' at the end,

(2) in subclause (II) by striking `, and' and inserting a period, and

(3) by striking subclause (III).

(c) Rollover From IRA- Subparagraph (B) of section 408A(c)(3) of such Code is amended by striking `relates--' and all that follows and inserting `relates, the taxpayer's adjusted gross income exceeds $100,000 ($200,000 in the case of a joint return).'.

(d) Effective Date- The amendments made by this section shall apply to taxable years beginning after December 31, 2004.

END