To amend the Internal Revenue Code of 1986 to allow withdrawals from individual retirement plans without penalty by individuals within areas determined by the President to be disaster areas by reason of certain natural disasters occurring in 2004.

Amends the Internal Revenue Code to permit premature distributions from certain tax-exempt retirement plans without penalty to individuals residing or holding real property within an area declared by the President as a disaster area due to a natural disaster at least part of which occurred in 2004, if such distributions are made within six months after the disaster declaration.

[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5094 Introduced in House (IH)]






108th CONGRESS
  2d Session
                                H. R. 5094

 To amend the Internal Revenue Code of 1986 to allow withdrawals from 
individual retirement plans without penalty by individuals within areas 
 determined by the President to be disaster areas by reason of certain 
                  natural disasters occurring in 2004.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 15, 2004

Mr. Foley (for himself, Mr. Shaw, Mr. Boyd, Ms. Ros-Lehtinen, Mr. Mario 
    Diaz-Balart of Florida, Mr. Hastings of Florida, Mr. Goss, Mr. 
  Bilirakis, Mr. Davis of Florida, Ms. Corrine Brown of Florida, Mr. 
 Lincoln Diaz-Balart of Florida, Mr. Keller, Ms. Ginny Brown-Waite of 
Florida, Mr. Miller of Florida, Ms. Harris, Mr. Deutsch, Mr. Mica, Mr. 
Wexler, Mr. Camp, Mr. English, Mr. Weller, Mr. Houghton, Mr. Wilson of 
 South Carolina, Mr. Burton of Indiana, Mr. Taylor of North Carolina, 
and Mr. Pickering) 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 allow withdrawals from 
individual retirement plans without penalty by individuals within areas 
 determined by the President to be disaster areas by reason of certain 
                  natural disasters occurring in 2004.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. TEMPORARY EXPANSION OF PENALTY-FREE WITHDRAWALS FROM 
              INDIVIDUAL RETIREMENT PLANS FOR INDIVIDUALS WITHIN 
              CERTAIN DISASTER AREAS.

    (a) In General.--Paragraph (2) of section 72(t) of the Internal 
Revenue Code of 1986 (relating to 10-percent additional tax on early 
distributions from qualified retirement plans) is amended by adding at 
the end the following new subparagraph:
                    ``(G) Distributions from retirement plans to 
                victims of certain natural disasters occurring in 
                2004.--Any distribution from an individual retirement 
                plan to an individual who resides within, or holds real 
                property located within, an area determined by the 
                President to warrant assistance from the Federal 
                Government under the Robert T. Stafford Disaster Relief 
                and Emergency Assistance Act by reason of hurricane, 
                flood, or other natural disaster at least part of which 
                occurred in calendar year 2004 if such distribution is 
                made within 6 months after the date of the disaster 
                declaration. Distributions shall not be taken into 
                account under the preceding sentence if such 
                distributions are described in subparagraph (A), (D), 
                (E), or (F) or to the extent paragraph (1) does not 
                apply to such distributions by reason of subparagraph 
                (B).''.
    (b) Effective Date.--The amendment made by this section shall apply 
to distributions received in taxable years beginning after December 31, 
2003.
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