[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2381 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 2381

      To amend the Internal Revenue Code of 1986 to provide that 
distributions from an IRA for higher education expenses are exempt from 
   the 10-percent early distribution tax even after annuitization of 
                                account.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 28, 2001

 Mr. Deal of Georgia 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 provide that 
distributions from an IRA for higher education expenses are exempt from 
   the 10-percent early distribution tax even after annuitization of 
                                account.

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

SECTION 1. TREATMENT OF IRA DISTRIBUTIONS FOR HIGHER EDUCATION EXPENSES 
              AFTER ANNUITIZATION OF ACCOUNT.

    (a) In General.--Subparagraph (E) of section 72(t)(2) of the 
Internal Revenue Code of 1986 (relating to distributions from 
individual retirement plans for higher education expenses) is amended 
by adding at the end the following new sentence: ``The treatment under 
this sentence shall apply even after the commencement of distributions 
described in subparagraph (A)(iv) and proper adjustments shall be 
allowed in subsequent distributions under such subparagraph.''
    (b) Effective Date.--The amendment made by this section shall apply 
to distributions after the date of the enactment of this Act.
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