[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 475 Introduced in Senate (IS)]

103d CONGRESS
  1st Session
                                 S. 475

   To amend the Internal Revenue Code of 1986 to permit penalty-free 
     distributions from qualified retirement plans for unemployed 
                              individuals.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

               March 2 (legislative day, January 5), 1993

 Mr. DeConcini 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 penalty-free 
     distributions from qualified retirement plans for unemployed 
                              individuals.

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

SECTION 1. PENALTY-FREE DISTRIBUTIONS FOR CERTAIN UNEMPLOYED 
              INDIVIDUALS.

    (a) In General.--Paragraph (2) of section 72(t) of the Internal 
Revenue Code of 1986 (relating to exceptions to 10-percent additional 
tax on early distributions from qualified retirement plans) is amended 
by adding at the end thereof the following subparagraph:
                    ``(D) Distributions to unemployed individuals.--
                Distributions made 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 distributions are made during 
                        any taxable year during which such unemployment 
                        compensation is paid or the succeeding taxable 
                        year.''
    (b) Effective Date.--The amendment made by this section shall apply 
to distributions on or after the date of the enactment of this Act.

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