Increase in contribution limitations

(a) In general Subsection (b) of section 223 of the Internal Revenue Code of 1986 is amended— (1) in paragraph (1), by striking the sum of and all that follows through the period and inserting an amount equal to the applicable dollar amount under paragraph (1)(B) of section 402(g) (as adjusted pursuant to paragraph (4) of such section) with respect to such taxable year., (2) by striking paragraphs (2), (3), (5), (7), and (8), (3) by inserting after paragraph (1) the following: (2) Additional contributions for individuals 50 or older In the case of an individual who has attained age 50 before the close of the taxable year, the amount of the limitation under paragraph (1) shall be increased by an amount equal to the applicable dollar amount under subparagraph (B)(i) of section 414(v)(2) (as adjusted pursuant to subparagraph (C) of such section)., (4) in paragraph (4), by striking the flush matter following subparagraph (C), and (5) by redesignating paragraphs (4) and (6) as paragraphs (3) and (4), respectively. (b) Conforming amendments (1) Subparagraph (A) of section 223(d)(1) of the Internal Revenue Code of 1986 is amended by striking the sum of— and all that follows through the period and inserting the amount determined under subsection (b)(1).. (2) Subsection (g)(1) of section 223 of such Code is amended— (A) by striking (b)(2), (c)(2)(A), and and inserting (c)(2)(A) and,, (B) by amending subparagraph (B) to read as follows: (B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which such taxable year begins determined by substituting calendar year 2003 for calendar year 2016 in subparagraph (A)(ii) thereof., and (C) by striking (b)(2), (c)(1)(E)(ii)(II), and inserting (c)(1)(E)(ii)(II). (3) Section 26(b)(2)(S) of such Code is amended by striking, 223(b)(8)(B)(i)(II),. (4) Section 408(d)(9)(C)(i)(I) of such Code is amended by striking computed on the basis of the type of coverage under the high deductible health plan covering the individual. (c) Effective date The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.