This Act may be cited as the “Retirement Protection Act of 2022”.

(a) 50 percent credit rate.—Section 25B(a) of the Internal Revenue Code of 1986 is amended by striking “the applicable percentage” and inserting “50 percent”.

(b) Adjusted gross income phaseouts.—Section 25B(b) of such Code is amended to read as follows:

“(b) Limitation.—For purposes of this section—

“(1) IN GENERAL.—The amount of credit allowable under subsection (a) (determined without regard to this subsection) shall be reduced (but not below zero) by an amount which bears the same ratio to the credit otherwise so allowable as—

“(A) the excess (if any) of—

“(i) adjusted gross income of the taxpayer, over

“(ii) the threshold amount, bears to

“(B) the phaseout amount.

“(2) THRESHOLD AMOUNT.—The term ‘threshold amount’ means—

“(A) in the case of a joint return or a surviving spouse (as defined in section 2(a)), $48,000,

“(B) in the case of a head of household, 75 percent of the amount in effect for the taxable year under subparagraph (A), and

“(C) in the case of any other individual, 50 percent of the amount in effect for the taxable year under subparagraph (A).

“(3) PHASEOUT AMOUNT.—The term ‘phaseout amount’ means—

“(A) in the case of a joint return or a surviving spouse (as defined in 2(a)), $35,000,

“(B) in the case of a head of household (as defined in section 2(b)), 75 percent of the amount in effect for the taxable year under subparagraph (A), and

“(C) in the case of any other individual, 50 percent of the amount in effect for the taxable year under subparagraph (A).

“(4) INFLATION ADJUSTMENT.—

“(A) IN GENERAL.—In the case of any taxable year beginning in a calendar year after 2023, the $48,000 dollar amount in paragraph (2) and the $35,000 in paragraph (3) shall each be increased by an amount equal to—

“(i) such dollar amount, multiplied by

“(ii) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting ‘calendar year 2022’ for ‘calendar year 2016’ in subparagraph (A)(ii) thereof.

“(B) ROUNDING.—Any increase determined under subparagraph (A) that is not a multiple of $500 shall be rounded to the nearest multiple of $500.”.

(c) Effective date.—The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.

(a) Defined contribution plans.—In the case of the first taxable year of an individual ending after the date of the enactment of this Act—

(1) ELECTIVE DEFERRALS.—The applicable dollar amount for elective deferrals under section 402(g) of the Internal Revenue Code of 1986, and any dollar limitation determined by reference thereto, shall be increased by $4,000.

(2) 457 PLANS.—The applicable dollar amount under section 457(e)(15)(A) of such Code with respect to an eligible deferred compensation plan (as defined in section 457(b) of such Code) shall be increased by $4,000.

(b) Individual retirement accounts.—In the case of the first taxable year of an individual ending after the date of the enactment of this Act—

(1) IN GENERAL.—The deductible amount under section 219(b)(1)(A) of such Code shall be increased by $4,000. For purposes of such Code, the preceding sentence shall be taken into account in determining the maximum amount allowable as a deduction under section 219.

(2) SIMPLE RETIREMENT ACCOUNTS.—In the case of elective employer contributions to a simple retirement account (as defined in section 408(p) of such Code), the applicable dollar amount under paragraph (2)(E) thereof shall increased by $4,000.

(c) Certain contributions made after close of taxable year.—In the case of a contribution—

(1) which is made after the first taxable year of an individual ending after the date of the enactment of this Act, and before the 15th day of the fourth month following the close of such taxable year, and

(2) to which subsection (b) would apply were such contribution made before the end of such first taxable year,

the taxpayer may elect to treat such contribution as made during such taxable year for purposes of this section.