[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 157 Introduced in Senate (IS)]

111th CONGRESS
  1st Session
                                 S. 157

  To amend the Internal Revenue Code of 1986 to expand the temporary 
 waiver of required minimum distribution rules for certain retirement 
                          plans and accounts.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 6, 2009

Ms. Snowe (for herself and Mrs. Lincoln) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
  To amend the Internal Revenue Code of 1986 to expand the temporary 
 waiver of required minimum distribution rules for certain retirement 
                          plans and accounts.

    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 ``Retirement Account Distribution 
Improvement Act of 2009''.

SEC. 2. EXPANSION OF WAIVER OF REQUIRED MINIMUM DISTRIBUTION RULES FROM 
              CERTAIN RETIREMENT PLANS AND ACCOUNTS.

    (a) In General.--Subparagraph (H) of section 401(a)(9) of the 
Internal Revenue Code of 1986, as added by the Worker, Retiree, and 
Employer Recovery Act of 2008, is amended--
            (1) by striking ``for calendar year 2009'' in clause (i) 
        and inserting ``for calendar years 2008, 2009 or 2010'',
            (2) by striking ``2009'' in clause (ii)(I) and inserting 
        ``2010'', and
            (3) by striking ``to calendar year 2009'' in clause 
        (ii)(II) and inserting ``to calendar years 2008, 2009, or 
        2010''.
    (b) Eligible Rollover Distributions.--The last sentence of section 
402(c)(4) of the Internal Revenue Code of 1986, as added by the Worker, 
Retiree, and Employer Recovery Act of 2008, is amended by striking 
``2009'' and inserting ``2008, 2009, or 2010''.
    (c) Effective Dates.--
            (1) In general.--The amendments made by this section shall 
        apply to taxable years beginning after December 31, 2007.
            (2) Recontributions of distributions in 2008 or early 
        2009.--
                    (A) In general.--If a person receives 1 or more 
                eligible distributions, the person may, on or before 
                July 1, 2009, make one or more contributions (in an 
                aggregate amount not exceeding all eligible 
                distributions) to an eligible retirement plan 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 the Internal 
                Revenue Code of 1986, as the case may be. For purposes 
                of the preceding sentence, rules similar to the rules 
                of clauses (ii) and (iii) of section 402(c)(11)(A) of 
                such Code shall apply in the case of a beneficiary who 
                is not the surviving spouse of the employee or of the 
                owner of the individual retirement plan.
                    (B) Eligible distribution.--For purposes of this 
                paragraph--
                            (i) In general.--Except as provided in 
                        clause (ii), the term ``eligible distribution'' 
                        means an applicable distribution to a person 
                        from an individual account or annuity--
                                    (I) under a plan which is described 
                                in clause (iv), and
                                    (II) from which a distribution 
                                would, but for the application of 
                                section 401(a)(9)(H) of such Code, have 
                                been required to have been made to the 
                                individual for 2008 or 2009, whichever 
                                is applicable, in order to satisfy the 
                                requirements of sections 401(a)(9), 
                                404(a)(2), 403(b)(10), 408(a)(6), 
                                408(b)(3), and 457(d)(2) of such Code.
                            (ii) Eligible distributions limited to 
                        required distributions.--The aggregate amount 
                        of applicable distributions which may be 
                        treated as eligible distributions for purposes 
                        of this paragraph shall not exceed--
                                    (I) for purposes of applying 
                                subparagraph (A) to distributions made 
                                in 2008, the amount which would, but 
                                for the application of section 
                                401(a)(9)(H) of such Code, have been 
                                required to have been made to the 
                                individual in order to satisfy the 
                                requirements of sections 401(a)(9), 
                                404(a)(2), 403(b)(10), 408(a)(6), 
                                408(b)(3), and 457(d)(2) of such Code 
                                for 2008, and
                                    (II) for purposes of applying 
                                subparagraph (A) to distributions made 
                                in 2009, the sum of the amount which 
                                would, but for the application of such 
                                section 401(a)(9)(H), have been 
                                required to have been made to the 
                                individual in order to satisfy such 
                                requirements for 2009, plus the excess 
                                (if any) of the amount described in 
                                subclause (I) which may be distributed 
                                in 2009 to meet such requirements for 
                                2008 over the portion of such amount 
                                taken into account under subclause (I) 
                                for distributions made in 2008.
                            (iii) Applicable distribution.--
                                    (I) In general.--The term 
                                ``applicable distribution'' means a 
                                payment or distribution which is made 
                                during the period beginning on January 
                                1, 2008, and ending on June 30, 2009.
                                    (II) Exception for minimum required 
                                distributions for other years.--Such 
                                term shall not include a payment or 
                                distribution which is required to be 
                                made in order to satisfy the 
                                requirements of section 401(a)(9), 
                                404(a)(2), 403(b)(10), 408(a)(6), 
                                408(b)(3), or 457(d)(2) of such Code 
                                for a calendar year other than 2008 or 
                                2009.
                                    (III) Exception for payments in a 
                                series.--In the case of any plan 
                                described in clause (iv)(I), such term 
                                shall not include any payment or 
                                distribution made in 2009 which is a 
                                payment or distribution described in 
                                section 402(c)(4)(A).
                            (iv) Plans described.--A plan is described 
                        in this clause if the plan is--
                                    (I) a defined contribution plan 
                                (within the meaning of section 414(i) 
                                of such Code) which is described in 
                                section 401, 403(a), or 403(b) of such 
                                Code or which is an eligible deferred 
                                compensation plan described in section 
                                457(b) of such Code maintained by an 
                                eligible employer described in section 
                                457(e)(1)(A)) of such Code, or
                                    (II) an individual retirement plan 
                                (as defined in section 7701(a)(37) of 
                                such Code).
                    (C) 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) with 
                respect to a payment or distribution from a 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 the payment or 
                distribution in an eligible rollover distribution (as 
                defined in section 402(c)(4) of such Code) and as 
                having transferred the amount to the plan in a direct 
                trustee to trustee transfer.
                    (D) 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) with respect to a payment or 
                distribution from 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 that satisfies subparagraphs (A) and (B) 
                of section 408(d)(3) of such Code and as having been 
                transferred to the individual retirement plan in a 
                direct trustee to trustee transfer.
            (3) Provisions relating to plan or contract amendments.--
                    (A) In general.--If this paragraph applies to any 
                pension plan or contract amendment, such pension plan 
                or contract shall be treated as being operated in 
                accordance with the terms of the plan during the period 
                described in subparagraph (B)(ii)(I).
                    (B) Amendments to which paragraph applies.--
                            (i) In general.--This paragraph shall apply 
                        to any amendment to any pension plan or annuity 
                        contract which--
                                    (I) is made by pursuant to the 
                                amendments made by this section, and
                                    (II) is made on or before the last 
                                day of the first plan year beginning on 
                                or after January 1, 2011.
                        In the case of a governmental plan, subclause 
                        (II) shall be applied by substituting ``2012'' 
                        for ``2011''.
                            (ii) Conditions.--This paragraph shall not 
                        apply to any amendment unless during the period 
                        beginning on January 1, 2009, and ending on 
                        December 31, 2010 (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.
                                 <all>