[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3733 Introduced in House (IH)]







109th CONGRESS
  1st Session
                                H. R. 3733

To amend the Internal Revenue Code of 1986 to allow individuals who are 
  victims of Hurricane Katrina to withdraw funds without penalty from 
   their individual retirement accounts and certain other retirement 
                                 plans.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 13, 2005

Mr. Davis of Alabama 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 individuals who are 
  victims of Hurricane Katrina to withdraw funds without penalty from 
   their individual retirement accounts and certain other retirement 
                                 plans.

    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 ``Emergency Savings Relief Act of 
2005''.

SEC. 2. PENALTY-FREE WITHDRAWALS FROM IRA'S AND CERTAIN OTHER 
              RETIREMENT PLANS FOR VICTIMS OF HURRICANE KATRINA.

    (a) In General.--Paragraph (2) of section 72(t) of the Internal 
Revenue Code of 1986 (relating 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 ira's and certain other 
                retirement plans to victims of hurricane katrina.--
                            ``(i) In general.--Any qualified Katrina-
                        relief distribution.
                            ``(ii) Qualified katrina-relief 
                        distribution.--For purposes of this 
                        subparagraph, the term `qualified Katrina-
                        relief distribution' means any distribution to 
                        an individual if--
                                    ``(I) such distribution is from an 
                                individual retirement plan of such 
                                individual or from amounts attributable 
                                to employer contributions made pursuant 
                                to elective deferrals described in 
                                subparagraph (A) or (C) of section 
                                402(g)(3) or section 501(c)(18)(D)(iii) 
                                by such individual,
                                    ``(II) such individual encounters 
                                hardship by reason of Hurricane 
                                Katrina, and
                                    ``(III) such distribution is made 
                                after August 24, 2005, and before the 
                                close of the 6-month period beginning 
                                on the date of the enactment of this 
                                subparagraph.
                            ``(iii) Amount distributed may be repaid.--
                        Any individual who receives a qualified 
                        Katrina-relief distribution may, at any time 
                        during the 5-year period beginning on the day 
                        after the date on which such distribution was 
                        made, make one or more contributions to an 
                        individual retirement plan of such individual 
                        in an aggregate amount not to exceed the amount 
                        of such distribution. The dollar limitations 
                        otherwise applicable to contributions to 
                        individual retirement plans shall not apply to 
                        any contribution made pursuant to the preceding 
                        sentence. No deduction shall be allowed for any 
                        contribution pursuant to this clause.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to distributions received after August 24, 2005, in taxable years 
ending after such date.
                                 <all>