[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2545 Introduced in House (IH)]







108th CONGRESS
  1st Session
                                H. R. 2545

  To amend the Internal Revenue Code of 1986 to waive the 10-percent 
additional tax on early distributions from section 401(k) plans in the 
   case of hardship of certain employees due to facility closures or 
                        employers in bankruptcy.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 19, 2003

 Mr. Ryan of Ohio (for himself and Mrs. Jones of Ohio) 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 waive the 10-percent 
additional tax on early distributions from section 401(k) plans in the 
   case of hardship of certain employees due to facility closures or 
                        employers in bankruptcy.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Blue-Collar Employee Relief Act of 
2003''.

SEC. 2. 10-PERCENT ADDITIONAL TAX ON EARLY DISTRIBUTIONS FROM QUALIFIED 
              RETIREMENT PLANS NOT TO APPLY TO CERTAIN HARDSHIP 
              DISTRIBUTIONS FROM SECTION 401(K) PLANS.

    (a) In General.--Subparagraph (A) of section 72(t)(2) of the 
Internal Revenue Code of 1986 is amended by striking ``or'' at the end 
of clause (vi), by striking the period at the end of clause (vii) and 
inserting ``, or'', and by adding at the end the following new clause:
                            ``(viii) made from a cash or deferred 
                        arrangement (as defined in section 401(k)) upon 
                        the hardship of the employee if--
                                    ``(I) the employer maintaining the 
                                plan of which such arrangement is a 
                                part is a debtor in a title 11 or 
                                similar case (as defined in section 
                                368(a)(3)) or the employee separates 
                                from employment on account of the 
                                closure of a facility of the employer, 
                                and
                                    ``(II) the adjusted gross income of 
                                the taxpayer for the taxable year 
                                (determined without regard to such 
                                distributions) in which such 
                                distribution is received does not 
                                exceed $50,000 ($100,000 in the case of 
                                a joint return).''
    (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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