I
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.
Short title
This Act may be cited as the
Individual Recovery Assistance Act of
2011
.
Moratorium on penalty for early distributions from qualified retirement plans
In general
Paragraph (2) of section 72(t) of the Internal Revenue Code of 1986 is amended by adding at the end the following:
Recovery distributions
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.
.
Qualified recovery distribution
Subsection (t) of section 72 of such Code is amended by adding at the end the following new paragraph:
Qualified recovery distribution
For purposes of paragraph (2)(H)—
In general
The term qualified recovery distribution means any distribution which is—
a qualified mortgage distribution, or
a qualified unemployment distribution.
Qualified mortgage distribution distributions
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.
Qualified unemployment distribution
For purposes of subparagraph (A)—
In general
The term qualified unemployment distribution means a distribution to an individual after separation from employment if—
such individual has received unemployment compensation for 12 consecutive weeks under any Federal or State unemployment compensation law by reason of such separation, and
such distribution is made during any taxable year during which such unemployment compensation is paid or the succeeding taxable year.
Distributions after reemployment and self-employed individuals
Rules similar to the rules of clauses (ii) and (iii) of paragraph (2)(D) shall apply.
Coordination
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).
.
Effective date
The amendments made by this section shall apply to distributions on or after the date of the enactment of this Act.
Increase in age for required distributions
In general
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
.
Conforming amendments
Section 219(d)(1)
of such Code is amended by striking 70½
in
the heading and the text and inserting 75
.
Section 408(b) of such Code is amended by
striking 70½
and inserting
75
.
408(d)(8)(B)(ii) of such Code is amended by
striking 70½
and inserting
75
.
408A(c)(4) of such Code is amended by
striking 70½
in the heading and the text
and inserting 75
.
Section 457(d)(1)(A)(i) of such Code is
amended by striking 70½
and inserting
75
.
Effective date
The amendments made by this subsection shall apply to years beginning after the date of the enactment of this Act.
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