[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 2474 Introduced in Senate (IS)]
2d Session
S. 2474
To amend the Internal Revenue Code of 1986 to allow penalty-free
withdrawals from retirement plans during the period that a military
reservist or national guardsman is called to active duty for an
extended period, and for other purposes.
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IN THE SENATE OF THE UNITED STATES
May 21, 2004
Mr. Allard (for himself, Mr. Durbin, and Ms. Landrieu) introduced the
following bill; which was read twice and referred to the
Committee on FinanceYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYY
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to allow penalty-free
withdrawals from retirement plans during the period that a military
reservist or national guardsman is called to active duty for an
extended period, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Guardsmen and Reservists Financial
Relief Act of 2004''.
SEC. 2. PENALTY-FREE WITHDRAWALS FROM RETIREMENT PLANS FOR INDIVIDUALS
CALLED TO ACTIVE DUTY FOR AT LEAST 179 DAYS.
(a) In General.--Paragraph (2) of section 72(t) of the Internal
Revenue Code of 1986 (relating to 10-percent additional tax on early
distributions from qualified retirement plans) is amended by adding at
the end the following new subparagraph:
``(G) Distributions from retirement plans to
individuals called to active duty.--
``(i) In general.--Any qualified reservist
distribution.
``(ii) Amount distributed may be repaid.--
Any individual who receives a qualified
reservist distribution may, at any time during
the 2-year period beginning on the day after
the end of the active duty period, make one or
more contributions to an individual retirement
plan of such individual in an aggregate amount
not to exceed the amount of such distribution.
The dollar limitations otherwise applicable to
contributions to individual retirement plans
shall not apply to any contribution made
pursuant to the preceding sentence. No
deduction shall be allowed for any contribution
pursuant to this clause.
``(iii) Qualified reservist distribution.--
For purposes of this subparagraph, the term
`qualified reservist distribution' means any
distribution to an individual if--
``(I) such distribution is from an
individual retirement plan, or from
amounts attributable to employer
contributions made pursuant to elective
deferrals described in subparagraph (A)
or (C) of section 402(g)(3) or section
501(c)(18)(D)(iii),
``(II) such individual was (by
reason of being a member of a reserve
component (as defined in section 101 of
title 37, United States Code)), ordered
or called to active duty for a period
in excess of 179 days or for an
indefinite period, and
``(III) such distribution is made
during the period beginning on the date
of such order or call and ending at the
close of the active duty period.
``(iv) Application of subparagraph.--This
subparagraph applies to individuals ordered or
called to active duty after September 11, 2001,
and before September 12, 2005. In no event
shall the 2-year period referred to in clause
(ii) end before the date which is 2 years after
the date of the enactment of this
subparagraph.''.
(b) Conforming Amendments.--
(1) Section 401(k)(2)(B)(i) of such Code is amended by
striking ``or'' at the end of subclause (III), by striking
``and'' at the end of subclause (IV) and inserting ``or'', and
by inserting after subclause (IV) the following new subclause:
``(V) the date on which a period
referred to in section
72(t)(2)(G)(iii)(III) begins, and''.
(2) Section 403(b)(11) of such Code is amended by striking
``or'' at the end of subparagraph (A), by striking the period
at the end of subparagraph (B) and inserting ``, or'', and by
inserting after subparagraph (B) the following new
subparagraph:
``(C) for distributions to which section
72(t)(2)(G) applies.''.
(c) Effective Date.--The amendments made by this section shall
apply to distributions after September 11, 2001.
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