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1 Legislative History of the Self-Employed Individuals Tax Retirement Act of 1962 P.L. 87-792 1 (1958)

handle is hein.leghis/gstosele0001 and id is 1 raw text is: 85TH CO1NGRESS HOUSE OF REPRESENTATIVES R oR 2dd S&sion fNo. 2277 SELF-EMPLOYED INDIVIDUALS' RETIREMENT ACT OF 1958 JULY 24, 1958.-Committed to the Committee of the Whole House on the State of the Union and ordered to be printed Mr. KEOGH, from the Committee on Ways and Means, submitted the following REPORT [To accompany H. R. 10] The Committee on Ways and Means, to whom was referred the bill (H. R. 10) to encourage the establishment of voluntary pension plans by self-employed individuals, having considered the same, report favorably thereon with an amendment and recommend that the bill as amended do pass. The committee amendment strikes out all after the enacting clause and inserts in lieu thereof a substitute which appears in the reported bill in italic type. I. PURPOSE Yotur committee's bill generally permits self-employed individuals to take a current deduction for a limited amount of investment in certain types of retirement annuity, or a specific type of retirement trust. The investments plus accumulated earnings will be treated as ordinary income when they are taken down. Penalty provisions are provided for withdrawing the amounts during the lifetime of the self- employed individual if they are withdrawn before he is 65 years of age. On the other band, he must begin to withdraw these amounts not later than when he reaches age 70. II. REASON FOR THE BILL This bill is intended to achieve greater equality of tax treatment between self-employed individuals and employees. Under present law the employees of a business can achieve this postponement of tax on retirement income savings if the employer pays into a quali- fied pension, profit-sharing, or stok bonus plan what he might otherwise have paid directly to the employees. These amounts can 20006----- - 1