[Congressional Record Volume 163, Number 196 (Friday, December 1, 2017)]
[Senate]
[Page S7730]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 1837. Mr. INHOFE submitted an amendment intended to be proposed to 
amendment SA 1618 proposed by Mr. McConnell (for Mr. Hatch (for himself 
and Ms. Murkowski)) to the bill H.R. 1, to provide for reconciliation 
pursuant to titles II and V of the concurrent resolution on the budget 
for fiscal year 2018; which was ordered to lie on the table; as 
follows:

       At the appropriate place, insert the following:

     SEC. __. ONE-TIME WITHDRAWAL OF PENSION SAVINGS AT A 10-
                   PERCENT TAX RATE.

       (a) In General.--Section 72 is amended by redesignating 
     subsection (x) as subsection (y) and by inserting after 
     subsection (w) the following new subsection:
       ``(x) Special Rate for Distributions From Applicable Plans 
     During 2018.--
       ``(1) In general.--If a taxpayer receives 1 or more 
     qualified distributions from 1 or more applicable retirement 
     plans during the taxpayer's first taxable year beginning 
     after December 31, 2017, then, notwithstanding any other 
     provision of this title--
       ``(A) the tax imposed by this chapter for such taxable year 
     shall, in lieu of the tax otherwise imposed by this chapter, 
     be equal to the sum of--
       ``(i) a tax computed at the rates and in the same manner as 
     if this subsection had not been enacted on taxable income 
     reduced by the aggregate qualified distributions of the 
     taxpayer, plus
       ``(ii) a tax of 10 percent of such qualified distributions 
     (or, if less, taxable income), and
       ``(B) no penalty or addition to tax shall be imposed with 
     respect to such qualified distributions.
       ``(2) Qualified distribution.--For purposes of this 
     subsection--
       ``(A) In general.--The term `qualified distribution' means, 
     with respect to any applicable retirement plan, any 
     applicable distribution received by a taxpayer from the plan 
     to the extent that such distribution, when added to all other 
     applicable distributions received by the taxpayer from the 
     plan during such taxable year, does not exceed 25 percent of 
     the aggregate balance to the credit of the individual 
     (whether as a participant, owner, or beneficiary) in the plan 
     (determined as of the close of the calendar year preceding 
     the calendar year in which the taxable year begins).
       ``(B) Applicable distribution.--
       ``(i) In general.--The term `applicable distribution' means 
     any distribution received by a taxpayer from an applicable 
     retirement plan which is includible in gross income of the 
     taxpayer.
       ``(ii) Exception for required distributions.--Such term 
     shall not include any minimum required distribution (as 
     defined in section 4974(b)) from an applicable retirement 
     plan for any taxable year and the 25-percent amount under 
     subparagraph (A) shall be reduced by the amount of such 
     distributions.
       ``(C) Aggregation.--A taxpayer may elect to treat all 
     applicable retirement plans as 1 plan for purposes of 
     applying this section and may allocate qualified 
     distributions among such plans in such manner as specified in 
     the election.
       ``(3) Applicable retirement plan.--The term `applicable 
     retirement plan' means--
       ``(A) a defined contribution plan to which section 401(a) 
     or 403(a) applies,
       ``(B) an annuity contract under section 403(b),
       ``(C) an eligible deferred compensation plan described in 
     section 457(b) which is maintained by an eligible employer 
     described in section 457(e)(1)(A), or
       ``(D) an individual retirement plan.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2017.
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