[Congressional Record Volume 150, Number 59 (Monday, May 3, 2004)]
[Senate]
[Page S4769]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. HATCH:
  S. 2375. a bill to amend the Internal Revenue Code of 1986 to allow 
penalty-free withdrawals from retirement plans during the period that a 
military reservist or national guardsman is called to active duty for 
an extended period, and for other purposes; to the Committee on 
Finance.
  Mr. HATCH. Mr. President, I rise today to introduce legislation to 
allow penalty-free withdrawals from retirement plans during the period 
that a military reservist or a National Guardsman is called to active 
duty. Specifically, the provision would allow individuals who are 
called to active duty for at least 179 days between September 11, 2001, 
and September 15, 2005, to avoid the 10-percent penalty tax that is 
normally imposed on early distributions.
  This bill passed the House of Representatives by unanimous consent 
late last month, and it is my hope that this important and appropriate 
legislation will receive the same resounding support by my colleagues 
in the Senate.
  Nearly 3,000 reservists and Guard members from my home State of Utah 
have been called to active duty and are currently stationed in the 
Persian Gulf and Afghanistan. I believe it is safe to say that when 
many of these brave young men and women were informed by their 
commanding officers they would be placed on full-time active duty, they 
were not only concerned with the extended time period they would be 
called away from their families, but also with the reality that by 
temporarily leaving behind their full-time civilian jobs, many of them 
would leave behind a higher paycheck. Many reservists are suddenly 
faced with the prospect that their income may no longer cover all of 
the expenses for themselves and their families.
  Some may say that allowing reservists to make withdrawals from their 
retirement accounts without incurring a penalty is too small a step and 
not worthy of our time. But to many reservists and Guard members, these 
retirement accounts can be a significant resource in helping to 
alleviate some of their financial stress. Providing our soldiers with 
an additional option to support their families certainly seems like a 
worthwhile cause to me.
  The cost of this bill to the U.S. Treasury is estimated to be only $4 
million over 10 years. I think we can all agree this cost is minimal 
considering the tremendous sacrifices that our reservists, Guard 
members, and their families are making each day. In addition, there is 
a provision in this bill that would allow our soldiers to repay any 
amount withdrawn, without penalty, for 2 years after leaving active 
duty.
  There is no doubt that there are many additional much needed 
improvements to our policies that each of us must work together towards 
to ensure the financial peace of mind for our Guard and Reserve members 
and their families. It is imperative for each of us to give our 
soldiers not only all of the tools, armor, and technology to fight 
those who seek to destroy peace, but we must also do everything within 
our power to give our soldiers every appropriate resource to make it 
easier to care for their loved ones they have left behind.
  I urge my colleagues to give serious consideration to this bill, and 
it is my hope that it can be passed by unanimous consent. I am 
confident that President Bush would have no hesitation in signing this 
important bill into law, if we can pass it in the Senate and send it to 
him.

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