110 HR 5641 IH: IRA Assistance Act of 2008 U.S. House of Representatives 2008-03-14 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I 110th CONGRESS 2d Session H. R. 5641 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.

1.

Short title

This Act may be cited as the IRA Assistance Act of 2008.

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.