1.Modification of exception
from 10 percent early withdrawal penalty for public safety employees
(a)Repeal of
restriction to defined benefit plansSubparagraph (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
2006Paragraph (10) of section 72(t) is amended by adding at the
end the following new subparagraph:
(C)Transitional
rule for annuitiesParagraph
(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)
(1)Repeal of
restriction to defined benefit plansThe 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 annuitiesThe amendment made by subsection (b) shall apply to
modifications made after the date of the enactment of the Pension Protection
Act of 2006.