[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2331 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 2331

  To amend the Internal Revenue Code of 1986 to waive the 10 percent 
 penalty on distributions from qualified retirement plans for mortgage 
payments on qualified residences and in respect of unemployment and to 
increase the age at which distributions from qualified retirement plans 
               are required to begin from 70\1/2\ to 75.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 7, 2009

  Mr. Latta 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 waive the 10 percent 
 penalty on distributions from qualified retirement plans for mortgage 
payments on qualified residences and in respect of unemployment and to 
increase the age at which distributions from qualified retirement plans 
               are required to begin from 70\1/2\ to 75.

    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 ``Individual Recovery Assistance Act 
of 2009''.

SEC. 2. MORATORIUM ON PENALTY FOR EARLY DISTRIBUTIONS FROM QUALIFIED 
              RETIREMENT PLANS.

    (a) In General.--Paragraph (2) of section 72(t) of the Internal 
Revenue Code of 1986 is amended by adding at the end the following:
                    ``(I) Recovery distributions.--In the case of 
                distributions on or after the date of the enactment of 
                this subparagraph and before the end of the 1-year 
                period beginning on such date, any qualified recovery 
                distribution.''.
    (b) Qualified Recovery Distribution.--Subsection (t) of section 72 
of such Code is amended by adding at the end the following new 
paragraph:
            ``(11) Qualified recovery distribution.--For purposes of 
        paragraph (2)(I)--
                    ``(A) In general.--The term `qualified recovery 
                distribution' means any distribution which is--
                            ``(i) a qualified mortgage distribution, or
                            ``(ii) a qualified unemployment 
                        distribution.
                    ``(B) Qualified mortgage distribution 
                distributions.--For purposes of subparagraph (A), the 
                term `qualified mortgage distribution' means a 
                distribution to the extent that the aggregate 
                distributions for the taxable year do not exceed the 
                aggregate payments of the taxpayer for the taxable year 
                for principal, interest, escrow for real estate taxes 
                and property insurance, and mortgage insurance with 
                respect to any residence that is a qualified residence 
                (as defined in section 163(h)(4)(A)) of the taxpayer 
                for the taxable year.
                    ``(C) Qualified unemployment distribution.--For 
                purposes of subparagraph (A)--
                            ``(i) In general.--The term `qualified 
                        unemployment distribution' means a distribution 
                        to an individual after separation from 
                        employment if--
                                    ``(I) such individual has received 
                                unemployment compensation for 12 
                                consecutive weeks under any Federal or 
                                State unemployment compensation law by 
                                reason of such separation, and
                                    ``(II) such distribution is made 
                                during any taxable year during which 
                                such unemployment compensation is paid 
                                or the succeeding taxable year.
                            ``(ii) Distributions after reemployment and 
                        self-employed individuals.--Rules similar to 
                        the rules of clauses (ii) and (iii) of 
                        paragraph (2)(D) shall apply.
                    ``(D) Coordination.--Distributions shall not be 
                taken into account under subparagraph (A) if such 
                distributions are described in subparagraph (A), (C), 
                (D), (E), (F), or (G) of paragraph (2) or to the extent 
                paragraph (1) does not apply to such distributions by 
                reason of paragraph (2)(B).''.
    (c) Effective Date.--The amendments made by this section shall 
apply to distributions on or after the date of the enactment of this 
Act.

SEC. 3. INCREASE IN AGE FOR REQUIRED DISTRIBUTIONS.

    (a) In General.--Subparagraphs (B)(iv)(I) and (C) of section 
401(a)(9) of the Internal Revenue Code of 1986 are amended by striking 
``70\1/2\'' each place it occurs and inserting ``75''.
    (b) Conforming Amendments.--
            (1) Section 219(d)(1) of such Code is amended by striking 
        ``70\1/2\'' in the heading and the text and inserting ``75''.
            (2) Section 408(b)(4) of such Code is amended by striking 
        ``70\1/2\'' and inserting ``75''.
            (3) 408(d)(8)(B)(ii) of such Code is amended by striking 
        ``70\1/2\'' and inserting ``75''.
            (4) 408A(c)(4) of such Code is amended by striking ``70\1/
        2\'' in the heading and the text and inserting ``75''.
            (5) Section 457(d)(1)(A)(i) of such Code is amended by 
        striking ``70\1/2\'' and inserting ``75''.
    (c) Effective Date.--The amendments made by this subsection shall 
apply to years beginning after the date of the enactment of this Act.
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