< Back to H.R. 2524 (111th Congress, 2009–2010)

Text of the Dave Thomas Adoption Act of 2009

This bill was introduced on May 20, 2009, in a previous session of Congress, but was not enacted. The text of the bill below is as of May 20, 2009 (Introduced).

Source: GPO

I

111th CONGRESS

1st Session

H. R. 2524

IN THE HOUSE OF REPRESENTATIVES

May 20, 2009

(for himself, Mr. Paul, and Mr. Burton of Indiana) 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 allow penalty-free withdrawals from individual retirement plans for adoption expenses.

1.

Short title

This Act may be cited as the Dave Thomas Adoption Act of 2009.

2.

Penalty-free withdrawals from individual retirement plans for adoption expenses

(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)

Qualified adoption expenses

(i)

In general

Distributions from an individual retirement plan to the extent that the amount of such distributions does not exceed the lesser of—

(I)

$10,000 for the taxable year with respect to the adoption of a child, or

(II)

the amount determined under clause (ii).

(ii)

Determination of expenses not covered by credit

The amount determined under this clause is the excess (if any) of—

(I)

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

(II)

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).

(iii)

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))—

(I)

subclauses (I) and (II) of clause (i) shall not apply, and

(II)

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.

For purposes of subclause (II), the term applicable period means the 3-taxable year period beginning with the taxable year in which such adoption becomes final.
(iv)

Ordering rule

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).

.

(b)

Effective date

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