HR 659
112th CONGRESS
1st Session
H. R. 659
To amend the Internal Revenue Code of 1986 to waive the 10-percent
penalty with respect to early retirement distributions for certain unemployed
individuals.
IN THE HOUSE OF REPRESENTATIVES
February 11, 2011
Mr. BROUN of Georgia (for himself, Mrs. LUMMIS, Mr. RIGELL, Mr. FRANKS of
Arizona, Mr. POSEY, Mr. GOHMERT, Mr. MARCHANT, and Ms. FOXX) 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.
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 `Retirement Savings Access Act of 2011'.
SEC. 2. WAIVER OF 10-PERCENT PENALTY FOR CERTAIN UNEMPLOYMENT DISTRIBUTIONS.
(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) UNEMPLOYMENT DISTRIBUTIONS-
`(i) IN GENERAL- Any distribution to an individual after separation
from employment--
`(I) 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),
`(II) 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
`(III) if such distributions are made during any taxable year during
which such employment compensation is paid.
`(ii) 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.
`(iii) 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.'.
(b) Effective Date- The amendment made by this section shall apply to distributions
made after the date of the enactment of this Act.
END
