I
111th CONGRESS
1st Session
H. R. 3612
IN THE HOUSE OF REPRESENTATIVES
September 22, 2009
Mr. Broun of Georgia (for himself, Mr. Westmoreland, Mr. Deal of Georgia, and Mr. Kingston) 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 waive the 10 percent penalty with respect to early retirement distributions for certain unemployed individuals.
Short title
This Act may be cited as the
Retirement Savings Access Act of
2009
.
Waiver of 10 percent penalty for certain unemployment distributions
In general
Paragraph (2) of section 72(t) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph:
Unemployment distributions
In general
Any distribution to an individual after separation from employment—
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 in section 501(c)(18)(D)(iii),
if such individual has received unemployment compensation for 26 consecutive weeks for any Federal or State Unemployment compensation law by reason of such separation, and
if such distributions are made during any taxable year during which such employment compensation is paid.
Distributions after reemployment
Clause (i) shall not apply to any distribution made after the individual has been employed for at least 60 days after the separation from employment to which clause (i) relates.
Self-employed individuals
To the extent provided in regulations, a self-employed individual shall be treated as meeting the requirements of clause (i)(II) if, under Federal or State law, the individual would have received unemployment compensation but for the fact the individual was self-employed.
.
Effective date
The amendment made by this section shall apply to distributions made after the date of the enactment of this Act.