HR 1134 IH

To amend the Internal Revenue Code of 1986 to modify the exemption from the self-employment tax for certain termination payments received by former life insurance salesmen.

March 20, 2001

Mr. WELLER (for himself, Mr. KLECZKA, Mr. RYAN of Wisconsin, and Mr. POMEROY) introduced the following bill; which was referred to the Committee on Ways and Means

To amend the Internal Revenue Code of 1986 to modify the exemption from the self-employment tax for certain termination payments received by former life insurance salesmen.

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 `Former Insurance Agents Tax Equity Act of 2001'.

SEC. 2. MODIFICATION OF EXEMPTION FROM SELF-EMPLOYMENT TAX FOR CERTAIN TERMINATION PAYMENTS RECEIVED BY FORMER INSURANCE SALESMEN.

(a) INTERNAL REVENUE CODE- Paragraph (4) of section 1402(k) of the Internal Revenue Code of 1986 (relating to codification of treatment of certain termination payments received by former insurance salesmen) is amended to read as follows:

`(4) the amount of such payment depends primarily on policies sold by or credited to the account of such individual or the extent to which such policies remain in force for some period after such termination, or both.'.

(b) SOCIAL SECURITY ACT- Paragraph (4) of section 211(j) of the Social Security Act is amended to read as follows:

`(4) the amount of such payment depends primarily on policies sold by or credited to the account of such individual or the extent to which such policies remain in force for some period after such termination, or both.'.

(c) EFFECTIVE DATE- The amendments made by this section shall apply to payments after December 31, 2001.

END