H. R. 2524
IN THE HOUSE OF REPRESENTATIVES
May 20, 2009
Mr. King of New York (for himself, Mr. Paul, and Mr. Burton of Indiana) introduced the following bill; which was referred to the Committee on Ways and Means
To amend the Internal Revenue Code of 1986 to allow penalty-free withdrawals from individual retirement plans for adoption expenses.
This Act may be cited as the
Dave Thomas Adoption Act of
Penalty-free withdrawals from individual retirement plans for adoption expenses
Paragraph (2) of section 72(t) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph:
Qualified adoption expenses
Distributions from an individual retirement plan to the extent that the amount of such distributions does not exceed the lesser of—
$10,000 for the taxable year with respect to the adoption of a child, or
the amount determined under clause (ii).
Determination of expenses not covered by credit
The amount determined under this clause is the excess (if any) of—
the qualified adoption expenses (as defined in section 23(d)) paid by the taxpayer during the taxable year with respect to the adoption of such child, over
the amount of the credit allowable under section 23 for such expenses (determined as if such credit were allowed for such year without regard to any limitation based on liability for tax).
Special rules for child with special needs
In the case of an adoption of a child with special needs (as defined in section 23(d)(3))—
subclauses (I) and (II) of clause (i) shall not apply, and
a distribution during the applicable period from an individual retirement plan with respect to such adoption shall not be taken into account under this subparagraph to the extent that such distribution, when added to all other distributions with respect to such adoption from individual retirement plans for the applicable period, exceeds $10,000.
Distributions shall not be taken into account under clause (i) if such distributions are described in subparagraph (A), (C), (D), (E), (F), or (G) or to the extent paragraph (1) does not apply to such distributions by reason of subparagraph (B).
The amendment made by this section shall apply to distributions after the date of the enactment of this Act.