H.R. 4279

Veteran Self Relief Act of 2012

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I

112th CONGRESS

2d Session

H. R. 4279

IN THE HOUSE OF REPRESENTATIVES

March 28, 2012

Mr. Young of Indiana (for himself, Mr. Hultgren, and Mr. Latta) 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 early distribution penalty with respect to withdrawals by unemployed veterans from certain retirement accounts.

1.

Short title

This Act may be cited as the Veteran Self Relief Act of 2012.

2.

Certain distributions from retirement accounts of unemployed veterans not subject to 10 percent penalty

(a)

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:

(H)

Certain distributions to unemployed veterans

Any qualified unemployed veteran distribution.

.

(b)

Definitions

Subsection (t) of section 72 of such Code is amended by adding at the end the following new paragraph:

(11)

Qualified unemployed veteran distribution

For purposes of this paragraph and paragraph (2)(H)—

(A)

Qualified unemployed veteran distribution

The term qualified unemployed veteran distribution means any distribution to a veteran (as defined in section 101 of title 38, United States Code) from a specified account if such distribution is made during a qualified unemployment-related distribution period.

(B)

Specified account

The term specified account means—

(i)

any individual retirement account of the veteran, and

(ii)

the Thrift Savings Fund established under section 8437 of title 5, United States Code.

(C)

Qualified unemployment-related distribution period

(i)

In general

The term qualified unemployment-related distribution period means so much of any qualified unemployment period as is after the 12 consecutive weeks referred to in clause (ii)(I).

(ii)

Qualified unemployment period

The term qualified unemployment period means, with respect to any veteran, any uninterrupted period of unemployment if—

(I)

such veteran receives unemployment compensation for 12 consecutive weeks under any Federal or State unemployment compensation law during such uninterrupted period, and

(II)

such uninterrupted period begins during the 1-year period beginning on the date of such veteran’s discharge or release which is referred to in section 101 of title 38, United States Code, with respect to such veteran.

.

(c)

Effective date

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