Small Business Access to Savings Act of 2008

Small Business Access to Savings Act of 2008 - Amends the Internal Revenue Code to allow a tax-free hardship distribution from a 401k pension plan to prevent the insolvency of a trade or business of the plan participant.

[Congressional Bills 110th Congress]
[From the U.S. Government Printing Office]
[H.R. 6719 Introduced in House (IH)]







110th CONGRESS
  2d Session
                                H. R. 6719

     To amend the Internal Revenue Code of 1986 to allow hardship 
distributions from 401(k) plans to prevent the insolvency of a trade or 
                       business of the employee.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 31, 2008

   Ms. Bean 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 hardship 
distributions from 401(k) plans to prevent the insolvency of a trade or 
                       business of the employee.

    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 ``Small Business Access to Savings Act 
of 2008''.

SEC. 2. HARDSHIP DISTRIBUTIONS FROM 401(K) PLANS TO PREVENT THE 
              INSOLVENCY OF A TRADE OR BUSINESS OF THE EMPLOYEE.

    (a) In General.--Subsection (k) of section 401 of the Internal 
Revenue Code of 1986 (relating to cash or deferred arrangements) is 
amended by adding at the end the following new paragraph:
            ``(14) Special rule relating to hardship distributions.--
        For purposes of subclause (IV) of paragraph (2)(B)(i), hardship 
        of the employee shall include the prevention of insolvency of a 
        trade or business of the participant.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to distributions after the date of the enactment of this Act.
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