H.R. 2637

To amend the Internal Revenue Code of 1986 to increase the age at which distributions from qualified retirement plans are required to begin and to extend the waiver of required minimum distribution rules for certain retirement plans and accounts through 2010.

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I

111th CONGRESS

1st Session

H. R. 2637

IN THE HOUSE OF REPRESENTATIVES

May 21, 2009

Mr. Sensenbrenner introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to increase the age at which distributions from qualified retirement plans are required to begin and to extend the waiver of required minimum distribution rules for certain retirement plans and accounts through 2010.

1.

Extension of waiver of required minimum distribution rules for certain retirement plans and accounts

(a)

In general

Subclause (i) of section 401(a)(9)(H) of the Internal Revenue Code of 1986 is amended by striking calendar year 2009 and inserting calendar years 2009 and 2010.

(b)

Conforming amendments

(1)

Clause (ii) of section 401(a)(9)(H)(ii) of such Code is amended—

(A)

by striking 2009 in subclause (I) and inserting 2010, and

(B)

by striking calendar year 2009 in subclause (II) and inserting calendar years 2009 and 2010.

(2)

The last sentence of section 402(c)(4) of such Code is amended—

(A)

by striking distribution during 2009 and inserting distribution during calendar year 2009 or 2010, and

(B)

by striking applied during 2009 and inserting applied during such calendar year.

(c)

Effective date

(1)

In general

The amendments made by this section shall apply for calendar years beginning after December 31, 2009.

(2)

Provisions relating to plan or contract amendments

(A)

In general

If this paragraph applies to any pension plan or contract amendment, such pension plan or contract shall not fail to be treated as being operated in accordance with the terms of the plan during the period described in subparagraph (B)(ii) solely because the plan operates in accordance with this section.

(B)

Amendments to which paragraph applies

(i)

In general

This paragraph shall apply to any amendment to any pension plan or annuity contract which—

(I)

is made pursuant to the amendments made by this section, and

(II)

is made on or before the last day of the first plan year beginning on or after January 1, 2012.

In the case of a governmental plan, subclause (II) shall be applied by substituting 2013 for 2012.
(ii)

Conditions

This paragraph shall not apply to any amendment unless during the period beginning on the effective date of the amendment and ending on December 31, 2010, the plan or contract is operated as if such plan or contract amendment were in effect.

2.

Increase in age for required distributions

(a)

In general

Subparagraphs (B)(iv)(I) and (C) of section 401(a)(9) of the Internal Revenue Code of 1986 are each amended by striking 701/2 each place it appears and inserting 75.

(b)

Conforming amendments

(1)

Section 219(d)(1) of such Code is amended by striking 701/2 in the heading and the text and inserting 75.

(2)

Section 408(c)(4) of such Code is amended by striking 701/2 in the heading and the text and inserting 75.

(3)

Section 408(b) of such Code is amended by striking 701/2 and inserting 75.

(4)

Section 457(d)(1)(A)(i) of such Code is amended by striking 701/2 and inserting 75.

(c)

Effective date

The amendments made by this section shall apply to years beginning after the date of the enactment of this Act.