[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3762 Introduced in House (IH)]

103d CONGRESS
  2d Session
                                H. R. 3762

 To amend the Internal Revenue Code of 1986 to permit the penalty-free 
 withdrawal of amounts in retirement plans to pay for disaster-related 
                               expenses.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            February 2, 1994

 Mr. Gallegly 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 permit the penalty-free 
 withdrawal of amounts in retirement plans to pay for disaster-related 
                               expenses.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. PENALTY-FREE WITHDRAWALS FOR DISASTER-RELATED EXPENSES.

    (a) General Rule.--Paragraph (2) of section 72(t) of the Internal 
Revenue Code of 1986 (relating to distributions to which penalty does 
not apply) is amended by adding at the end the following new 
subparagraph:
                    ``(D) Disaster-related distributions.--Any 
                distribution if such distribution is used within 60 
                days of the date of the distribution to pay disaster-
                related costs.''
    (b) Disaster-Related Costs Defined.--Subsection (t) of section 72 
of such Code is amended by adding at the end the following new 
paragraph:
            ``(6) Disaster-related costs.--For purposes of this 
        subsection, the term `disaster-related costs' means--
                    ``(A) costs of repairing or replacing property 
                damaged in a federally declared disaster, and
                    ``(B) any additional living expenses incurred on 
                account of damage to the taxpayer's residence caused by 
                a federally declared disaster.
        For purposes of the preceding sentence, the term `federally 
        declared disaster' means any disaster occurring in an area 
        subsequently determined by the President of the United States 
        to warrant assistance by the Federal Government under the 
        Disaster Relief and Emergency Assistance Act.''
    (c) Effective Date.--The amendments made by this section shall 
apply to distributions after January 17, 1994.

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