Affordable Homeowners Insurance Act of 2007 - Amends the Internal Revenue Code to exempt distributions from retirement plans for disaster relief from the penalty for premature retirement plan withdrawals.
[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2873 Introduced in House (IH)]
110th CONGRESS
1st Session
H. R. 2873
To amend the Internal Revenue Code of 1986 to exempt disaster relief
distributions from retirement plans from the penalty for early
withdrawal.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 26, 2007
Mr. Weldon of Florida (for himself, Mr. Wexler, Mr. Young of Florida,
Mr. Hastings of Florida, Ms. Ros-Lehtinen, Mr. Lincoln Diaz-Balart of
Florida, Ms. Ginny Brown-Waite of Florida, Mr. Mario Diaz-Balart of
Florida, Mr. Miller of Florida, Mr. Feeney, Mr. Crenshaw, 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 exempt disaster relief
distributions from retirement plans from the penalty for early
withdrawal.
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 ``Affordable Homeowners Insurance Act
of 2007''.
SEC. 2. DISTRIBUTIONS FROM RETIREMENT PLANS FOR DISASTER RELIEF NOT
SUBJECT TO PENALTY FOR EARLY WITHDRAWAL.
(a) In General.--Paragraph (2) of section 72(t) of the Internal
Revenue Code of 1986 (relating to subsection not to apply to certain
distributions) is amended by adding at the end the following new
subparagraph:
``(H) Distributions from retirement plans for
disaster relief.--
``(i) In general.--Any qualified disaster
relief distribution.
``(ii) Aggregate dollar limitation.--For
purposes of this subparagraph, the aggregate
amount of distributions received by an
individual which may be treated as qualified
disaster relief distributions for any taxable
year shall not exceed the excess (if any) of--
``(I) $100,000, over
``(II) the aggregate amounts
treated as qualified disaster relief
distributions received by such
individual for all prior taxable years.
``(iii) Treatment of plan distributions.--
If a distribution to an individual would be a
qualified disaster relief distribution, a plan
shall not be treated as violating any
requirement of this title merely because the
plan treats such distribution as a qualified
disaster relief distribution, unless the
aggregate amount of such distributions from all
plans maintained by the employer (and any
member of any controlled group which includes
the employer) to such individual exceeds
$100,000. For purposes of the preceding
sentence, the term `controlled group' means any
group treated as a single employer under
subsection (b), (c), (m), or (o) of section
414.
``(iv) Amount distributed may be repaid.--
``(I) In general.--Any individual
who receives a qualified disaster
relief distribution may, at any time
during the 3-year period beginning on
the day after the date on which such
distribution was received, make one or
more contributions in an aggregate
amount not to exceed the amount of such
distribution to an eligible retirement
plan of which such individual is a
beneficiary and to which a rollover
contribution of such distribution could
be made under section 402(c),
403(a)(4), 403(b)(8), 408(d)(3), or
457(e)(16), as the case may be.
``(II) Treatment of repayments of
distributions from eligible retirement
plans other than iras.--For purposes of
this title, if a contribution is made
pursuant to subparagraph (A) with
respect to a qualified disaster relief
distribution from an eligible
retirement plan other than an
individual retirement plan, then the
taxpayer shall, to the extent of the
amount of the contribution, be treated
as having received the qualified
disaster relief distribution in an
eligible rollover distribution (as
defined in section 402(c)(4)) and as
having transferred the amount to the
eligible retirement plan in a direct
trustee to trustee transfer within 60
days of the distribution.
``(III) Treatment of repayments for
distributions from iras.--For purposes
of this title, if a contribution is
made pursuant to subparagraph (A) with
respect to a qualified disaster relief
distribution from an individual
retirement plan (as defined by section
7701(a)(37)), then, to the extent of
the amount of the contribution, the
qualified disaster relief distribution
shall be treated as a distribution
described in section 408(d)(3) and as
having been transferred to the eligible
retirement plan in a direct trustee to
trustee transfer within 60 days of the
distribution.
``(v) Qualified disaster relief
distribution.--For purposes of this
subparagraph, the term `qualified disaster
relief distribution' means a distribution
made--
``(I) within 1 year after the date
on which a major disaster is declared
under section 401 of the Robert T.
Stafford Disaster Assistance Relief and
Emergency Assistance Act,
``(II) on account of such disaster,
and
``(III) to an individual whose
principal place of abode is in the area
with respect to which such disaster was
declared and who has sustained an
economic loss by reason of such
disaster.
``(vi) Income inclusion spread over 3-year
period.--
``(I) In general.--In the case of
any qualified disaster relief
distribution, unless the taxpayer
elects not to have this clause apply
for any taxable year, any amount
required to be included in gross income
for such taxable year shall be so
included ratably over the 3-taxable
year period beginning with such taxable
year.
``(II) Applicable rules.--For
purposes of subclause (I), rules
similar to the rules of subparagraph
(E) of section 408A(d)(3) shall
apply.''.
(b) Effective Date.--The amendment made by this section shall apply
with respect to disasters declared after the date of the enactment of
this Act.
(c) Provisions Relating to Plan Amendments.--
(1) In general.--If this subsection applies to any
amendment to any plan or annuity contract, such plan or
contract shall be treated as being operated in accordance with
the terms of the plan during the period described in paragraph
(2)(B)(i).
(2) Amendments to which subsection applies.--
(A) In general.--This subsection shall apply to any
amendment to any plan or annuity contract which is
made--
(i) pursuant to any provision of this
section, or pursuant to any regulation issued
by the Secretary of the Treasury or the
Secretary of Labor under any provision of this
section, and
(ii) on or before the last day of the first
plan year beginning on or after January 1,
2009, or such later date as the Secretary may
prescribe.
In the case of a governmental plan (as defined in
section 414(d)), clause (ii) shall be applied by
substituting the date which is 2 years after the date
otherwise applied under clause (ii).
(B) Conditions.--This subsection shall not apply to
any amendment unless--
(i) during the period--
(I) beginning on the date that this
section or the regulation described in
subparagraph (A)(i) takes effect (or in
the case of a plan or contract
amendment not required by this section
or such regulation, the effective date
specified by the plan), and
(II) ending on the date described
in subparagraph (A)(ii) (or, if
earlier, the date the plan or contract
amendment is adopted),
the plan or contract is operated as if such
plan or contract amendment were in effect; and
such plan or contract amendment applies
retroactively for such period.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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