[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5641 Introduced in House (IH)]







110th CONGRESS
  2d Session
                                H. R. 5641

  To amend the Internal Revenue Code of 1986 to permit hardship loans 
               from certain individual retirement plans.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 14, 2008

Mr. McCotter (for himself and Mr. Paul) 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 permit hardship loans 
               from certain individual 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 ``IRA Assistance Act of 2008''.

SEC. 2. HARDSHIP LOANS FROM CERTAIN INDIVIDUAL RETIREMENT PLANS.

    (a) In General.--Paragraph (2) of section 72(t) is amended by 
adding at the end the following new subparagraph:
                    ``(H) Hardship loans from certain individual 
                retirement plans.--
                            ``(i) In general.--Any qualified hardship 
                        loan.
                            ``(ii) Qualified hardship loan.--For 
                        purposes of this subparagraph, the term 
                        `qualified hardship loan' means any 
                        distribution to an individual from a qualified 
                        individual retirement plan of such individual 
                        upon hardship of such individual (within the 
                        meaning of section 401(k)(2)(B)(i)(IV)) if one 
                        or more contributions to a qualified individual 
                        retirement plan of such individual in an 
                        aggregate amount equal to such distribution are 
                        made during the 5-year period beginning on the 
                        date of such distribution.
                            ``(iii) Qualified individual retirement 
                        plan.--For purposes of this subparagraph, the 
                        term `qualified individual retirement plan' 
                        means an individual retirement plan other than 
                        a Roth IRA.
                            ``(iv) Limitation on amount of loan.--Such 
                        term shall not include any loan unless the 
                        amount of such loan (when added to the 
                        outstanding balance of all other hardship loans 
                        from Qualified individual retirement plans of 
                        such individual) does not exceed $50,000.
                            ``(v) Treatment of recontributions.--In the 
                        case of any contribution to a qualified 
                        individual retirement plan taken into account 
                        under clause (ii)--
                                    ``(I) the dollar limitations 
                                otherwise applicable to contributions 
                                to qualified individual retirement 
                                plans shall not apply to such 
                                contribution, and
                                    ``(II) no deduction shall be 
                                allowed for such contribution.
                            ``(vi) Failure to repay.--In the case of a 
                        failure to make the aggregate amount of 
                        contributions described in clause (ii) during 
                        the 5-year period described therein, the 
                        penalty determined under paragraph (1) shall be 
                        imposed for the taxable year in which such 5-
                        year period ends in lieu of the taxable year in 
                        which the distribution was made.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to distributions made after the 6-month period beginning on the date of 
the enactment of this Act.
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