[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 721 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 721

To amend the Internal Revenue Code of 1986 to modify the exception from 
 the 10 percent penalty for early withdrawals from governmental plans 
                 for qualified public safety employees.


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                    IN THE HOUSE OF REPRESENTATIVES

                            January 27, 2009

Mr. Meek of Florida (for himself and Mr. Brady of Texas) 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 modify the exception from 
 the 10 percent penalty for early withdrawals from governmental plans 
                 for qualified public safety employees.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. MODIFICATION OF EXCEPTION FROM 10 PERCENT EARLY WITHDRAWAL 
              PENALTY FOR PUBLIC SAFETY EMPLOYEES.

    (a) Repeal of Restriction to Defined Benefit Plans.--Subparagraph 
(A) of section 72(t)(10)(A) of the Internal Revenue Code of 1986 is 
amended by striking ``which is a defined benefit plan''.
    (b) Application to Annuities Commencing Before the Pension 
Protection Act of 2006.--Paragraph (10) of section 72(t) is amended by 
adding at the end the following new subparagraph:
                    ``(C) Transitional rule for annuities.--Paragraph 
                (4) shall not apply to any modification to a series of 
                substantially equal periodic payments which are made 
                with respect to a qualified public safety employee if 
                such series of payments commenced--
                            ``(i) before the date of the enactment of 
                        the Pension Protection Act of 2006, and
                            ``(ii) after such qualified public safety 
                        employee's separation from service after 
                        attainment of age 50.''.
    (c) Effective Dates.--
            (1) Repeal of restriction to defined benefit plans.--The 
        amendment made by subsection (a) shall apply to distributions 
        made after the date of the enactment of the Pension Protection 
        Act of 2006.
            (2) Transitional rule for annuities.--The amendment made by 
        subsection (b) shall apply to modifications made after the date 
        of the enactment of the Pension Protection Act of 2006.
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