To amend the Internal Revenue Code of 1986 to exclude from gross income distributions from individual retirement plans during periods of unemployment in 2009, 2010, and 2011.

Excludes from gross income, for income tax purposes, distributions from a tax-exempt retirement plan made after December 31, 2008, and before January 1, 2012, to individuals, including self-employed individuals, who have become unemployed and who have received unemployment compensation for 12 consecutive weeks.

Provides that such exclusion shall not apply to any distribution made after the individual has been employed for at least 60 days after the separation from employment.

[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6457 Introduced in House (IH)]

111th CONGRESS
  2d Session
                                H. R. 6457

To amend the Internal Revenue Code of 1986 to exclude from gross income 
   distributions from individual retirement plans during periods of 
                 unemployment in 2009, 2010, and 2011.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           November 29, 2010

Mr. McDermott 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 exclude from gross income 
   distributions from individual retirement plans during periods of 
                 unemployment in 2009, 2010, and 2011.

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

SECTION 1. RETIREMENT PLAN DISTRIBUTIONS WHILE UNEMPLOYED DURING 2009, 
              2010, AND 2011 EXCLUDED FROM GROSS INCOME.

    (a) In General.--For purposes of the Internal Revenue Code of 1986, 
gross income shall not include any qualified unemployment distribution.
    (b) Qualified Unemployment Distribution.--
            (1) In general.--For purposes of this section, the term 
        ``qualified unemployment distribution'' means any distribution 
        from a qualified retirement plan (as defined in section 4974(c) 
        of such Code) after separation from employment, if--
                    (A) such individual has received unemployment 
                compensation for 12 consecutive weeks under any Federal 
                or State unemployment compensation law by reason of 
                such separation,
                    (B) such distributions are made during any taxable 
                year during which such unemployment compensation is 
                paid or the succeeding taxable year, and
                    (C) such distribution is made after December 31, 
                2008, and before January 1, 2012.
            (2) Distributions after reemployment.--Paragraph (1) shall 
        not apply to any distribution made after the individual has 
        been employed for at least 60 days after the separation from 
        employment to which paragraph (1) applies.
            (3) Self-employed individuals.--To the extent provided in 
        regulations by the Secretary of the Treasury, a self-employed 
        individual shall be treated as meeting the requirements of 
        paragraph (1) if, under Federal or State law, the individual 
        would have received unemployment compensation but for the fact 
        the individual was self-employed.
    (c) Effective Date.--This section shall apply to distributions made 
after December 31, 2008, in taxable years ending after such date.
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