[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7277 Introduced in House (IH)]







110th CONGRESS
  2d Session
                                H. R. 7277

 To suspend the beginning date for required distributions from certain 
               retirement plans, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           November 19, 2008

Mr. Frelinghuysen (for himself and Mr. Bachus) introduced the following 
      bill; which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To suspend the beginning date for required distributions from certain 
               retirement plans, and for other purposes.

    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 ``Temporary IRA Distribution 
Suspension Act of 2008''.

SEC. 2. SUSPENSION OF REQUIRED BEGINNING DATE FOR DISTRIBUTIONS FROM 
              DEFINED CONTRIBUTION PLANS.

    (a) In General.--In the case of a defined contribution plan--
            (1) section 401(a)(9) of the Internal Revenue Code of 1986 
        shall not apply during the suspension period,
            (2) in lieu of the calendar year specified in subparagraph 
        (C)(i) of section 401(a)(9) of such Code, the calendar year 
        specified in such subparagraph shall be the later of--
                    (A) the calendar year described in such 
                subparagraph (C)(i), or
                    (B) calendar year 2010, and
            (3) the suspension period shall not be taken into account 
        for purposes of applying any time limitation in such section 
        401(a)(9).
    (b) Suspension Period.--For purposes of this section, the term 
``suspension period'' means the period beginning on January 1, 2008, 
and ending on December 31, 2009.
    (c) Application to Certain Other Plans.--The following sections 
shall be applied for the suspension period under rules similar to the 
rules of subsection (a) of this section--
            (1) in the case of a defined contribution plan, subsections 
        (a) and (b) of section 403, and sections 408 and 408A, of such 
        Code, and
            (2) in the case of an eligible deferred compensation plan 
        described in section 457(b) of such Code which is maintained by 
        an eligible employer described in section 457(e)(1)(A)) of such 
        Code, section 457 of such Code.
    (d) Application to Certain Periodic Payments.--For purposes of this 
section, in the case of a defined contribution plan, the failure to 
make a payment from a qualified retirement plan during the suspension 
period in an amount less than would be required under the applicable 
method shall not be treated as a modification for purposes of section 
72(t)(2)(A)(iv) of such Code.
    (e) Provisions Relating to Plan Amendments.--
            (1) In general.--If this section applies to any plan or 
        annuity contract, such plan or contract shall be treated as 
        being operated in accordance with the terms of the plan during 
        the period described in paragraph (2)(B)(i).
            (2) Amendments to which section applies.--
                    (A) In general.--This section shall apply to any 
                amendment to any plan or annuity contract which is 
                made--
                            (i) pursuant to this section or pursuant to 
                        any regulation issued by the Secretary of the 
                        Treasury to carry out this section, and
                            (ii) on or before the last day of the first 
                        plan year beginning on or after January 1, 
                        2009.
                    (B) Conditions.--This section shall not apply to 
                any amendment unless--
                            (i) during the period--
                                    (I) beginning on the first day of 
                                the suspension period, and
                                    (II) ending on the date described 
                                in subparagraph (A)(ii) (or, if 
                                earlier, the date the plan or contract 
                                amendment is adopted), the plan or 
                                contract is operated as if such plan or 
                                contract amendment were in effect, and
                            (ii) such plan or contract amendment 
                        applies retroactively for such period.
    (f) Effective Date.--
            (1) In general.--This section shall take effect on the date 
        of the enactment of this Act.
            (2) Recontribution of distributions before date of 
        enactment.--
                    (A) In general.--Any individual who receives a 
                payment or distribution during the period beginning on 
                January 1, 2008, and ending on the date of the 
                enactment of this Act from a plan to which subsection 
                (a) or (c) of this section applies may, before the end 
                of the suspension period, make one or more 
                contributions in an aggregate amount not to exceed the 
                amount of such payments or distributions to an eligible 
                retirement plan of which such individual is a 
                beneficiary and to which a rollover contribution of 
                such distribution could be made under section 402(c), 
                403(a)(4), 403(b)(8), 408(d)(3), or 457(e)(16) of such 
                Code, as the case may be.
                    (B) Treatment of repayments of distributions from 
                eligible retirement plans other than iras.--For 
                purposes of the Internal Revenue Code of 1986, if a 
                contribution is made pursuant to subparagraph (A) to an 
                eligible retirement plan other than an individual 
                retirement plan, then the taxpayer shall, to the extent 
                of the amount of the contribution, be treated as having 
                received such payments or distributions in an eligible 
                rollover distribution (as defined in section 402(c)(4) 
                of such Code) and as having transferred the amount to 
                the eligible retirement plan in a direct trustee to 
                trustee transfer within 60 days of the distribution.
                    (C) Treatment of repayments for distributions from 
                iras.--For purposes of the Internal Revenue Code of 
                1986, if a contribution is made pursuant to 
                subparagraph (A) to an individual retirement plan (as 
                defined by section 7701(a)(37) of such Code), then, to 
                the extent of the amount of the contribution, such 
                payments or distributions shall be treated as a 
                distribution described in section 408(d)(3) of such 
                Code and as having been transferred to the individual 
                retirement plan in a direct trustee to trustee transfer 
                within 60 days of the distribution.
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