To amend the Internal Revenue Code of 1986 to modify the exception from the 10 percent penalty for early withdrawals from governmental plans for Federal and State qualified public safety employees.

Amends the Internal Revenue Code to: (1) modify the exemption from the 10% penalty for premature distributions from governmental employee benefit plans to qualified public safety employees to eliminate the restriction that such plans be defined benefit plans; (2) expand the definition of "qualified public safety employee" to include federal employees; and (3) exempt from tax penalties certain periodic payments made to qualified public safety employees before the enactment of the Pension Protection Act of 2006 (i.e., August 17, 2006).

[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4239 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 4239

To amend the Internal Revenue Code of 1986 to modify the exception from 
 the 10 percent penalty for early withdrawals from governmental plans 
        for Federal and State qualified public safety employees.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            December 8, 2009

Mr. Meek of Florida (for himself and Mr. Brady of Texas) 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 modify the exception from 
 the 10 percent penalty for early withdrawals from governmental plans 
        for Federal and State qualified public safety employees.

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

SECTION 1. MODIFICATION OF EXCEPTION FROM 10 PERCENT EARLY WITHDRAWAL 
              PENALTY FOR FEDERAL AND STATE PUBLIC SAFETY EMPLOYEES.

    (a) Repeal of Restriction to Defined Benefit Plans.--Subparagraph 
(A) of section 72(t)(10)(A) of the Internal Revenue Code of 1986 is 
amended by striking ``which is a defined benefit plan''.
    (b) Inclusion of Federal Employees.--Subparagraph (B) of section 
72(t)(10) of such Code is amended to read as follows:
                    ``(B) Qualified public safety employee.--For 
                purposes of this paragraph, the term `qualified public 
                safety employee' means any employee of the Government 
                of the United States, a State or political subdivision 
                of a State, or any agency or instrumentality of any of 
                the foregoing who provides police protection, 
                firefighting services, or emergency medical services 
                for any area within the jurisdiction of the Government 
                of the United States, or such State or political 
                subdivision, as the case may be.''.
    (c) Application to Annuities Commencing Before the Pension 
Protection Act of 2006.--Paragraph (10) of section 72(t) is amended by 
adding at the end the following new subparagraph:
                    ``(C) Transitional rule for annuities.--Paragraph 
                (4) shall not apply to any modification to a series of 
                substantially equal periodic payments which are made 
                with respect to a qualified public safety employee if 
                such series of payments commenced--
                            ``(i) before the date of the enactment of 
                        the Pension Protection Act of 2006, and
                            ``(ii) after such qualified public safety 
                        employee's separation from service after 
                        attainment of age 50.''.
    (d) Effective Dates.--
            (1) In general.--The amendments made by subsections (a) and 
        (b) shall apply to distributions made after the date of the 
        enactment of the Pension Protection Act of 2006.
            (2) Transitional rule for annuities.--The amendment made by 
        subsection (c) shall apply to modifications made after the date 
        of the enactment of the Pension Protection Act of 2006.
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