On July 11, the Kay Bailey Hutchison Spousal IRA bill (H.R. 2289) passed the Senate, by voice vote. The bill, sponsored by Rep. Sam Johnson (R-TX), would rename section 219(c) of the Internal Revenue Code of 1986 as the Kay Bailey Hutchison Spousal IRA, in honor of the former Republican Senator from Texas. This bill previously was passed by the House (see The Source, 6/28/13). The president is expected to sign the bill into law.
The legislation establishing this section of the tax code was sponsored by former Sen. Hutchison. Passed in 1996, it allows stay-at-home spouses to receive similar tax benefits to those available to spouses who work outside the home for contributing to individual retirement accounts.
