Retirement Account Freedom Act of 2009

Retirement Account Freedom Act of 2009 - Amends the Internal Revenue Code to waive the 10% penalty for premature distributions from certain tax-exempt retirement plans during any period that the national rate of unemployment is at least 7%. Limits such waiver to distributions not exceeding 10% of the aggregate account balances of such plans.

[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3390 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 3390

  To amend the Internal Revenue Code of 1986 to waive the 10 percent 
 penalty on distributions from certain retirement plans during periods 
                         of high unemployment.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 29, 2009

 Mr. Hoekstra 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 waive the 10 percent 
 penalty on distributions from certain retirement plans during periods 
                         of high unemployment.

    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 ``Retirement Account Freedom Act of 
2009''.

SEC. 2. WAIVER OF 10 PERCENT PENALTY ON DISTRIBUTIONS FROM CERTAIN 
              RETIREMENT PLANS DURING PERIODS OF HIGH UNEMPLOYMENT.

    (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:
                    ``(H) Distributions during periods of high national 
                unemployment.--
                            ``(i) In general.--Distributions to an 
                        individual--
                                    ``(I) from an individual retirement 
                                plan, or from amounts attributable to 
                                employer contributions made pursuant to 
                                elective deferrals described in 
                                subparagraph (A) or (C) of section 
                                402(g)(3) or section 
                                501(c)(18)(D)(iii), and
                                    ``(II) during any period that the 
                                national rate of unemployment is at 
                                least 7 percent.
                            ``(ii) Limitation.--
                                    ``(I) In general.--Clause (i) shall 
                                not apply to the extent that the 
                                aggregate distributions during the 
                                taxable year exceed 10 percent of the 
                                aggregate account balances at the 
                                beginning of such year in the plans.
                                    ``(II) Account balance.--For 
                                purposes of subclause (I), in the case 
                                of a distribution other than from an 
                                individual retirement plan, the account 
                                balance shall include only amounts 
                                attributable to employer contributions 
                                described in clause (i)(I).''.
    (b) Effective Date.--The amendment made by this section shall apply 
to distributions received in taxable years ending after the date of the 
enactment of this Act.
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