Increasing Retirement Amount Act of 2021

“(h) Special rules for individuals without an employer plan—For purposes of this section—

“(1) In general—In the case of an applicable individual—

“(A) the deductible amount for purposes of subsection (b)(1)(A) is $12,000, and

“(B) the applicable amount for purposes of subsection (b)(5)(B)(i) is $3,000.

“(2) Cost-of-living adjustment

“(A) In general—In the case of any taxable year beginning in a calendar year after 2022, the $12,000 amount under paragraph (1)(A) shall 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 2021” for “calendar year 2016” in subparagraph (A)(ii) thereof.

“(B) Rounding rules—If any amount after adjustment under subparagraph (A) is not a multiple of $500, such amount shall be rounded to the next lower multiple of $500.

“(3) Applicable individual—For purposes of paragraph (1), the term applicable individual with respect to any taxable year means any individual whose employer does not maintain a plan described in any clause of subsection (g)(5)(A) for such taxable year.”