[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3365 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 3365

 To amend the Internal Revenue Code of 1986 to allow withdrawals from 
  individual retirement plans without penalty for certain individuals 
  significantly affected by the September 11, 2001, terrorist attacks.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           November 28, 2001

 Mrs. Mink of Hawaii 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 allow withdrawals from 
  individual retirement plans without penalty for certain individuals 
  significantly affected by the September 11, 2001, terrorist attacks.

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

SECTION 1. PENALTY-FREE WITHDRAWALS FROM INDIVIDUAL RETIREMENT PLANS 
              FOR CERTAIN INDIVIDUALS SIGNIFICANTLY AFFECTED BY 
              SEPTEMBER 11, 2001, TERRORIST ATTACKS.

    (a) In General.--Paragraph (2) of section 72(t) (relating to 
exceptions to 10-percent additional tax on early distributions from 
qualified retirement plans) is amended by adding at the end the 
following new subparagraph:
                    ``(G) Distributions from individual retirement 
                plans to beneficiaries adversely affected by september 
                11, 2001 terrorist attacks.--Distributions before 
                September 12, 2002, from an individual retirement plan 
                to an individual significantly affected by the 
                September 11, 2001, terrorist attacks against the 
                United States. Distributions shall not be taken into 
                account under the preceding sentence if such 
                distributions are described in subparagraph (A), (C), 
                (D), (E), or (F) or to the extent paragraph (1) does 
                not apply to such distributions by reason of 
                subparagraph (B).''.
    (b) Definition.--Section 72(t) of such Code is amended by 
redesignating paragraph (9) as paragraph (10) and by adding after 
paragraph (8) the following new paragraph:
            ``(9) Individuals significantly affected by September 11, 
        2001, terrorist attacks.--For purposes of paragraph (2)(G)--
                    ``(A) In general.--An individual is significantly 
                affected by the September 11, 2001, terrorist attacks 
                against the United States if the individual--
                            ``(i) has received unemployment 
                        compensation for 12 consecutive weeks under any 
                        Federal or State unemployment compensation law 
                        and if distributions from the retirement plan 
                        are made during any taxable year during which 
                        such unemployment compensation is paid or the 
                        succeeding taxable year,
                            ``(ii) is a 10-percent owner of a small 
                        business concern (within the meaning of the 
                        Small Business Act) that has suffered a 
                        significant negative economic impact since 
                        September 11, 2001, or
                            ``(iii) had a spouse or dependent (as 
                        defined in section 152) die as a result of such 
                        attacks.
                    ``(B) Significant negative economic impact.--For 
                purposes of subparagraph (A)(ii), a small business 
                concern has suffered a significant negative economic 
                impact if such concern is not able--
                            ``(i) to meet its obligations on an ongoing 
                        basis,
                            ``(ii) to pay its ordinary and necessary 
                        operating expenses, or
                            ``(iii) to market, produce, or provide a 
                        product or service ordinarily marketed, 
                        produced, or provided by the small business 
                        concern.
                    ``(C) 10-percent owner.--For purposes of 
                subparagraph (A)(ii), the term `10-percent owner' 
                means, with respect to a small business concern, an 
                individual who owns 10 percent or more--
                            ``(i) of the total combined voting power of 
                        such concern,
                            ``(ii) (by value) of the assets in such 
                        concern,
                            ``(iii) of the profits interest of a 
                        partnership which is such concern, or
                            ``(iv) of the beneficial interest of a 
                        trust or unincorporated enterprise which is 
                        such concern.
                    ``(D) Exception.--Subparagraph (A) shall not apply 
                to with respect to an individual whom the Secretary 
                determines was a perpetrator of any such terrorist 
                attack.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to distributions made on or after the date of the enactment of 
this Act.
                                 <all>