Text of H.R. 2756 (112th): Individual Recovery Assistance Act of 2011 (Introduced version)

112th CONGRESS

1st Session

H. R. 2756

IN THE HOUSE OF REPRESENTATIVES

August 1, 2011

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 penalty on distributions from qualified retirement plans for mortgage payments on qualified residences and in respect of unemployment and to increase the age at which distributions from qualified retirement plans are required to begin from 701/2 to 75.

This Act may be cited as the Individual Recovery Assistance Act of 2011.

(a)

Paragraph (2) of section 72(t) of the Internal Revenue Code of 1986 is amended by adding at the end the following:

(H)

In the case of distributions on or after the date of the enactment of this subparagraph and before the end of the 1-year period beginning on such date, any qualified recovery distribution.

(b)

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

(11)

For purposes of paragraph (2)(H)—

(A)

The term qualified recovery distribution means any distribution which is—

(i)

a qualified mortgage distribution, or

(ii)

a qualified unemployment distribution.

(B)

For purposes of subparagraph (A), the term qualified mortgage distribution means a distribution to the extent that the aggregate distributions for the taxable year do not exceed the aggregate payments of the taxpayer for the taxable year for principal, interest, escrow for real estate taxes and property insurance, and mortgage insurance with respect to any residence that is a qualified residence (as defined in section 163(h)(4)(A)) of the taxpayer for the taxable year.

(C)

For purposes of subparagraph (A)—

(i)

The term qualified unemployment distribution means a distribution to an individual after separation from employment if—

(I)

such individual has received unemployment compensation for 12 consecutive weeks under any Federal or State unemployment compensation law by reason of such separation, and

(II)

such distribution is made during any taxable year during which such unemployment compensation is paid or the succeeding taxable year.

(ii)

Rules similar to the rules of clauses (ii) and (iii) of paragraph (2)(D) shall apply.

(D)

Distributions shall not be taken into account under subparagraph (A) if such distributions are described in subparagraph (A), (C), (D), (E), (F), or (G) of paragraph (2) or to the extent paragraph (1) does not apply to such distributions by reason of paragraph (2)(B).

(c)

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

(a)

Subparagraphs (B)(iv)(I) and (C) of section 401(a)(9) of the Internal Revenue Code of 1986 are amended by striking 70½ each place it occurs and inserting 75.

(b)

(1)

Section 219(d)(1) of such Code is amended by striking 70½ in the heading and the text and inserting 75.

(2)

Section 408(b) of such Code is amended by striking 70½ and inserting 75.

(3)

408(d)(8)(B)(ii) of such Code is amended by striking 70½ and inserting 75.

(4)

408A(c)(4) of such Code is amended by striking 70½ in the heading and the text and inserting 75.

(5)

Section 457(d)(1)(A)(i) of such Code is amended by striking 70½ and inserting 75.

(c)

The amendments made by this subsection shall apply to years beginning after the date of the enactment of this Act.