Bill Summary
This legislation aims to clarify how certain contributions to retirement plans, made by government employers, are treated under the Internal Revenue Code of 1986. It specifically addresses situations where employees may have the option to make an irrevocable election between two different benefit formulas, and ensures that these contributions are still considered "picked up" by the employer. The amendment will go into effect after the date of the bill's enactment.
Possible Impacts
1. The bill could potentially affect employees who work for governmental employers by clarifying the treatment of certain retirement plan contributions.
2. The amendment could impact the taxes and contributions of employees who make an irrevocable election between two alternative benefit formulas.
3. The effective date of the amendment could affect the timing of when the changes outlined in the bill take effect, potentially impacting the retirement planning of affected individuals.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3213 Introduced in House (IH)]
<DOC>
116th CONGRESS
1st Session
H. R. 3213
To amend the Internal Revenue Code of 1986 to clarify the treatment of
certain retirement plan contributions picked up by governmental
employers.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 11, 2019
Mr. David P. Roe of Tennessee (for himself, Mr. Burchett, Mr.
Fleischmann, Mr. DesJarlais, Mr. Green of Tennessee, Mr. Kustoff of
Tennessee, and Mr. John W. Rose of Tennessee) 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 clarify the treatment of
certain retirement plan contributions picked up by governmental
employers.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. CLARIFICATION OF TREATMENT OF CERTAIN RETIREMENT PLAN
CONTRIBUTIONS PICKED UP BY GOVERNMENTAL EMPLOYERS.
(a) In General.--Section 414(h)(2) of the Internal Revenue Code of
1986 is amended--
(1) by striking ``For purposes of paragraph (1)'' and
inserting the following:
``(A) In general.--For purposes of paragraph (1)'',
and
(2) by adding at the end the following new subparagraph:
``(B) Treatment of elections between alternative
benefit formulas.--
``(i) In general.--For purposes of
subparagraph (A), a contribution shall not fail
to be treated as picked up by an employing unit
merely because the employee may make an
irrevocable election between the application of
two alternative benefit formulas involving the
same or different levels of employee
contributions.
``(ii) Application to existing employees.--
Clause (i) shall be applied without regard to
whether the employee is already covered by one
of the benefit formulas referred to therein.''.
(b) Effective Date.--The amendment made by this section shall apply
to years ending after the date of the enactment of this Act.
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