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[DOCID: f:h838ih.txt]






107th CONGRESS
  1st Session
                                H. R. 838

To amend the Internal Revenue Code of 1986 to allow individuals who are 
   exempt from the self-employment tax by reason of their religious 
                 beliefs to establish Keogh plans, etc.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 1, 2001

   Mr. Pitts (for himself, Mr. Portman, Mr. English, Mr. Regula, Mr. 
  Peterson of Pennsylvania, and Mr. Souder) 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 allow individuals who are 
   exempt from the self-employment tax by reason of their religious 
                 beliefs to establish Keogh plans, etc.

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

SECTION 1. AVAILABILITY OF PENSION PLANS TO SELF-EMPLOYED INDIVIDUALS 
              WHO ARE EXEMPT FROM THE SELF-EMPLOYMENT TAX BY REASON OF 
              THEIR RELIGIOUS BELIEFS.

    (a) In General.--Subparagraph (A) of section 401(c)(2) of the 
Internal Revenue Code of 1986 (defining earned income) is amended by 
adding at the end thereof the following new sentence: ``This 
subparagraph shall be applied as if the term `trade or business' for 
purposes of section 1402 included service described in section 
1402(c)(6).''.
    (b) Simple Retirement Accounts.--Clause (ii) of section 
408(p)(6)(A) of such Code (defining self-employed) is amended by adding 
at the end the following new sentence: ``The preceding sentence shall 
be applied as if the term `trade or business' for purposes of section 
1402 included service described in section 1402(c)(6).''.
    (c) Technical Amendment.--Paragraph (1) of section 219(f) of such 
Code is amended by striking the last sentence.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
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