President Barack Obama signed a bill honoring former Texas Senator Kay Bailey Hutchinson into law on July 25, 2013. The proposal will include a provision naming a section of the Internal Revenue Code the "Kay Bailey Hutchinson Spousal IRA."
Senator Hutchinson is a Republican from Texas who fought tirelessly to change the tax code to allow IRAs of married individuals to receive tax benefits. Her distinguished career spanned nearly two decades. She was the first woman to represent Texas in the Senate and was the most senior female Republican senator when she retired in 2013 following a failed bid to become the governor of Texas.
The bill is both symbolic in recognizing Senator Hutchinson's contributions to Congress while also fundamentally extending retirement benefits to spouses.
"I can't think of a better way to recognize the now former Senator's efforts to make it easier for families to achieve retirement security than by renaming the Spousal IRA the 'Kay Bailey Hutchison Spousal IRA,'" said Representative Sam Johnson, a Republican from Plano. He sponsored the bill in the House along with 25 other members from Texas, including two Democrats.
The bill was passed by the House of Representatives by a voice vote in June and was unanimously passed in the Senate earlier in July before being signed by the President.
The bill helps rewrite the tax code and affords spouses who do not work outside the home the same tax relief benefits traditionally given to the working class. Managed IRAs can be untaxed retirement accounts, depending on income levels, that offer peace of mind and provide retirees the necessary funds to help them ease into retirement.
Incorporating an entire segment of workers shows that Congress is committed to helping the public improve their financial portfolios.
Traditional IRAs have already been updated to incorporate the new provisions in the tax code. Newly established higher income levels allow more people to qualify for tax deductions and exemptions, while including the non-working and those that work from home.
Those with incomes above the federally regulated limits can look for alternatives to such retirement plans. Time Deposit IRAs can be one solution, investing in certificates of deposit for potentially higher returns. The alternative is that there is a minimum amount of time until the portfolio is available for use.