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.

Amends the Internal Revenue Code to exempt from the penalty for premature distributions from an individual retirement plan a distribution to an individual residing in an area declared as a federal disaster area due to hurricanes, floods, or other natural disasters occurring in 2004 or thereafter if such distribution is made within six months after the date of the disaster declaration.

[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3742 Introduced in House (IH)]







109th CONGRESS
  1st Session
                                H. R. 3742

 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.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 13, 2005

Mr. Foley (for himself, Mr. Meek of Florida, Ms. Harris, Mr. Miller of 
Florida, Mr. Weller, Ms. Ros-Lehtinen, Mr. English of Pennsylvania, Mr. 
 Mica, Mr. Jefferson, Mr. Mario Diaz-Balart of Florida, Mr. Mack, Mr. 
 Lincoln Diaz-Balart of Florida, Mr. Feeney, Mr. Davis of Florida, Mr. 
Putnam, Ms. Ginny Brown-Waite of Florida, Mr. Wilson of South Carolina, 
 Mr. Shaw, Mr. Boyd, and Mr. Bilirakis) 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.

    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 
                or thereafter.--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 occurring in calendar 
                year 2004 or thereafter 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.
                                 <all>