[Congressional Record Volume 153, Number 81 (Wednesday, May 16, 2007)]
[Extensions of Remarks]
[Page E1068]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          THE RESERVISTS AND GUARDSMEN TAX RELIEF ACT OF 2007

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                            HON. DAVE WELDON

                               of florida

                    in the house of representatives

                        Wednesday, May 16, 2007

  Mr. WELDON of Florida. Madam Speaker, I rise to introduce the 
Reservists and Guardsmen Tax Relief Act of 2007. As Reservists and 
Guardsmen are activated, this can cause financial strains on many of 
them, and my legislation is meant to help provide some financial relief 
during the time in which they are called to active duty.
  My bill would extend the penalty-free withdrawals from retirement 
accounts for Reservists and Guardsmen who are called to active duty for 
more than 179 days. This benefit is set to expire on December 31, 2007. 
My bill extends this benefit through December 31, 2008.
  Under this tax benefit, Guardsmen and Reservists called to active 
duty can receive payments from their individual retirement accounts, 
401(k) plans and 403(b) tax-sheltered annuities, without having to pay 
the 10 percent early-distribution surtax. Some Reservists and Guardsmen 
have already taken advantage of this benefit. While premature 
withdrawals from retirement accounts should be very carefully 
considered by anyone who has a retirement account, this proposal may 
assist in dealing with economic difficulties that may occur when a 
self-employed reservist, or any Reservist or Guardsman, is called to 
active duty service. This would be one way to allow them increased 
access to their money at a time when they are defending our liberties.
  Some Reservists and Guardsmen, including small business owners and 
employees of small businesses, experience loss of income when they are 
called to active duty. The drop in income is real for many Reservists 
and Guardsmen. Removal of the early withdrawal penalty would be one way 
to help alleviate some of the income loss that a Reservist or 
Guardsman's family might suffer as a result of activation.
  Our Reservists and Guardsmen should have access to their own money in 
order to help them make ends meet while activated. This is a small step 
to help out those who are serving in defense of our Nation. As a former 
active duty and reserve Army officer, I am committed to doing what I 
can to make active duty service easier for all of our servicemembers, 
both active and reserve.

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