[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 327 Introduced in Senate (IS)]

103d CONGRESS
  1st Session
                                 S. 327

  To amend the Internal Revenue Code of 1986 to permit rollovers into 
individual retirement accounts of separation pay from the Armed Forces.


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                   IN THE SENATE OF THE UNITED STATES

             February 4 (legislative day, January 5), 1993

 Mr. Murkowski (for himself, Mr. Bumpers, Mr. Durenberger, Mr. Glenn, 
 and Mr. Hatfield) introduced the following bill; which was read twice 
                and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
  To amend the Internal Revenue Code of 1986 to permit rollovers into 
individual retirement accounts of separation pay from the Armed Forces.

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

SECTION 1. SHORT TITLE.

    That this Act may be cited as the ``Military Separation Retirement 
Benefits Act of 1993''.

SEC. 2. IRA ROLLOVERS OF MILITARY SEPARATION PAY.

    (a) In General.--Section 402(a)(6) of the Internal Revenue Code of 
1986 (relating to special rollover rules) is amended by adding at the 
end thereof the following new subparagraph:
                    ``(J) Military separation pay.--If--
                            ``(i) an individual receives separation pay 
                        under section 1174 or 1174a of title 10, United 
                        States Code, and
                            ``(ii) such individual transfers any 
                        portion of such pay within 60 days after the 
                        receipt of such pay to an eligible retirement 
                        plan described in subclause (I) or (II) of 
                        paragraph (5)(E)(iv),
                then the portion of the pay so transferred shall be 
                treated as a transfer from a qualified trust which 
                meets the requirements of paragraph (5) and which is a 
                transfer of a distribution of amounts other than 
                employee contributions.''
    (b) Effective Date.--
            (1) In general.--The amendment made by subsection (a) shall 
        apply to pay received after December 5, 1991.
            (2) Transition rule.--In the case of any payment received 
        after December 5, 1991, and before the date of the enactment of 
        this Act, the 60-day transfer requirement of section 
        402(a)(6)(J)(ii) of the Internal Revenue Code of 1986 (as added 
        by subsection (a)) shall be treated as met if the taxpayer 
        transfers the payment to an eligible retirement plan within 1 
        year after such date of enactment.

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