[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 527 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 527

 To amend the Internal Revenue Code of 1986 to permit individuals who 
    withdrew certain amounts from individual retirement accounts to 
                       recontribute such amounts.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 21, 1993

  Mr. Neal of Massachusetts 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 individuals who 
    withdrew certain amounts from individual retirement accounts to 
                       recontribute such amounts.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, That (a) section 219 of 
the Internal Revenue Code of 1986 (relating to retirement savings) is 
amended by redesignating subsection (h) as subsection (i) and by 
inserting after subsection (g) the following new subsection:
    ``(h) Restoration of Certain Early Withdrawals.--
            ``(1) In general.--If an individual received a distribution 
        described in paragraph (4) from an individual retirement plan, 
        such individual may recontribute such distribution to an 
        individual retirement plan in the manner provided in this 
        subsection.
            ``(2) Method of making recontribution.--Any recontribution 
        of a distribution described in paragraph (4) received by any 
        individual--
                    ``(A) may be made only during the 5-year period 
                beginning on the later of the date on which such 
                distribution was received or the date of the enactment 
                of this subsection,
                    ``(B) shall not exceed the amount of such 
                distribution reduced by any prior recontribution under 
                this subsection with respect to such distribution, and
                    ``(C) shall be made by making a payment in cash to 
                an individual retirement plan for the benefit of such 
                individual.
        An individual making a contribution as recontribution under 
        this subsection shall designate (in the manner prescribed by 
        the Secretary) such contribution as a recontribution under this 
        subsection and shall specify the distribution in respect of 
        which such recontribution is being made.
            ``(3) Treatment of recontribution.--
                    ``(A) Deduction allowed.--There shall be allowed as 
                a deduction to an individual making a recontribution 
                under this subsection an amount which bears the same 
                ratio to the amount of such recontribution as the 
                portion of the distribution (with respect to which such 
                recontribution is being made) which was includible in 
                gross income bears to the entire amount of such 
                distribution. Such deduction shall be allowed for the 
                taxable year in which such recontribution is made.
                    ``(B) Treated as rollover contribution.--Any 
                recontribution under this subsection shall be treated 
                as a rollover contribution described in section 
                408(d)(3) for purposes of this section (other than this 
                subsection), section 408, and section 4973.
            ``(4) Distributions to which subsection applies.--A 
        distribution is described in this paragraph if--
                    ``(A) such distribution is received during the 6-
                year period beginning on the date 3 years before the 
                date of the enactment of this subsection, and
                    ``(B) an additional tax was imposed under section 
                72(t) with respect to such distribution.''
    (b) The amendment made by subsection (a) shall apply to taxable 
years ending after the date of the enactment of this Act.

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