To amend the Internal Revenue Code of 1986 to allow individuals who served in a combat zone as a member of the Armed Forces of the United States to make distributions from qualified retirement plans beginning at age 55 without being subject to the 10-percent additional tax for early withdrawal.

Amends the Internal Revenue Code to permit members of the Armed Forces who have served in a combat zone to receive distributions from tax-qualified retirement plans at age 55 (currently, age 59 1/2) without incurring the ten percent penalty for early distributions.

[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1094 Introduced in House (IH)]






109th CONGRESS
  1st Session
                                H. R. 1094

  To amend the Internal Revenue Code of 1986 to allow individuals who 
 served in a combat zone as a member of the Armed Forces of the United 
States to make distributions from qualified retirement plans beginning 
 at age 55 without being subject to the 10-percent additional tax for 
                           early withdrawal.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 3, 2005

 Mr. Fossella 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 individuals who 
 served in a combat zone as a member of the Armed Forces of the United 
States to make distributions from qualified retirement plans beginning 
 at age 55 without being subject to the 10-percent additional tax for 
                           early withdrawal.

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

SECTION 1. AGE FOR PENALTY-FREE WITHDRAWALS FROM QUALIFIED RETIREMENT 
              PLANS REDUCED TO 55 FOR SERVICE IN A COMBAT ZONE.

    (a) In General.--Clause (i) of section 72(t)(2)(A) of the Internal 
Revenue Code of 1986 is amended by inserting ``(age 55 in the case of 
an individual who is certified by the Secretary of Defense as serving, 
or as having served, in a combat zone (as defined in section 112(c)) as 
a member of the Armed Forces of the United States)'' after ``age 59\1/
2\''.
    (b) Effective Date.--The amendment made by this section shall apply 
to distributions made after the date of the enactment of this Act.
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