[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 350 Introduced in House (IH)]






109th CONGRESS
  1st Session
                                H. R. 350

To amend the Internal Revenue Code of 1986 to allow certain individuals 
      who have attained age 50 and who are unemployed to receive 
 distributions from qualified retirement plans without incurring a 10 
                        percent additional tax.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 25, 2005

  Mr. Platts 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 certain individuals 
      who have attained age 50 and who are unemployed to receive 
 distributions from qualified retirement plans without incurring a 10 
                        percent additional tax.

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

SECTION 1. NO ADDITIONAL TAX ON DISTRIBUTIONS FROM QUALIFIED RETIREMENT 
              PLANS TO CERTAIN INDIVIDUALS WHO HAVE ATTAINED AGE 50 AND 
              WHO ARE UNEMPLOYED.

    (a) In General.--Paragraph (2) of section 72(t) of the Internal 
Revenue Code of 1986 (relating to subsection not to apply to certain 
distributions) is amended by adding at the end the following new 
subparagraph:
                    ``(G) Distributions to certain individuals who have 
                attained age 50 and who are unemployed.--
                            ``(i) In general.--Distributions to an 
                        individual after separation from employment 
                        if--
                                    ``(I) as of the date of such 
                                distribution, such individual has 
                                attained age 50,
                                    ``(II) such individual has received 
                                unemployment compensation for 12 
                                consecutive weeks under any Federal or 
                                State unemployment compensation law by 
                                reason of such separation, and
                                    ``(III) such distribution is made 
                                during any taxable year during which 
                                such unemployment compensation is paid 
                                or any succeeding taxable year.
                            ``(ii) Reemployment and self-employment.--
                        Rules similar to the rules of clauses (ii) and 
                        (iii) of subparagraph (D) shall apply for 
                        purposes of this subparagraph.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to distributions made after December 31, 2004.
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