Adoption Incentives Act of 1997

Adoption Incentives Act of 1997 - Amends the Internal Revenue Code to exempt from the penalty for early distributions from qualified retirement plans distributions for qualified adoption expenses that are not covered by provisions allowing a credit for adoption expenses (determined as if the credit was allowed without regard to any limitation based on liability for tax).

[Congressional Bills 105th Congress]
[From the U.S. Government Printing Office]
[H.R. 2164 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 2164

   To amend the Internal Revenue Code of 1986 to permit penalty-free 
 withdrawals from individual retirement accounts for certain adoption 
                               expenses.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 15, 1997

 Mr. Kennedy of Massachusetts (for himself and Mr. Burton of Indiana) 
 introduced the following bill; which was referred to the Committee on 
                             Ways and Means

_______________________________________________________________________

                                 A BILL


 
   To amend the Internal Revenue Code of 1986 to permit penalty-free 
 withdrawals from individual retirement accounts for certain adoption 
                               expenses.

    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 ``Adoption Incentives Act of 1997''.

SEC. 2. PENALTY-FREE WITHDRAWALS FROM INDIVIDUAL RETIREMENT PLANS FOR 
              ADOPTION EXPENSES.

    (a) In General.--Paragraph (2) of section 72(t) of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
subparagraph:
                    ``(E) Qualified adoption expenses.--Distributions 
                from an individual retirement plan (other than 
                distributions described in the preceding subparagraphs 
                of this paragraph) to the extent that the amount of 
                such distributions does not exceed--
                            ``(i) the excess of the qualified adoption 
                        expenses (as defined in section 23(d)) paid by 
                        the taxpayer during the taxable year, over
                            ``(ii) the amount of the credit allowable 
                        under section 23 for such expenses (determined 
                        as if such credit were allowed for such year 
                        without regard to any limitation based on 
                        liability for tax).''
    (b) Effective Date.--The amendment made by this section shall apply 
to distributions after the date of the enactment of this Act.
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