Unemployment Assistance Act of 2011 - Amends the Internal Revenue Code to exclude from gross income amounts distributed from tax-exempt retirement plans, health savings accounts, Roth individual retirement accounts (IRAs), and qualified tuition programs to pay for certain living, health care and education or job training expenses of a taxpayer during a period of unemployment not exceeding two years.
[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2262 Introduced in House (IH)]
112th CONGRESS
1st Session
H. R. 2262
To amend the Internal Revenue Code of 1986 to exclude from gross income
amounts distributed from tax-favored accounts during a period of
unemployment.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 21, 2011
Mr. Paul 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
amounts distributed from tax-favored accounts during a period of
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 ``Unemployment Assistance Act of
2011''.
SEC. 2. EXCLUSION FROM GROSS INCOME OF UNEMPLOYMENT DISTRIBUTIONS FROM
TAX-FAVORED ACCOUNTS.
(a) In General.--Part III of subchapter B of chapter 1 of the
Internal Revenue Code is amended by inserting after section 139D the
following new section:
``SEC. 139E. DISTRIBUTIONS FROM TAX-FAVORED ACCOUNT DURING PERIODS OF
UNEMPLOYMENT.
``(a) In General.--Gross income shall not include any qualified
unemployment distribution from a tax-favored account.
``(b) Definitions.--For purposes of this section--
``(1) Qualified unemployment distribution.--
``(A) In general.--The term `qualified unemployment
distribution' means, with respect to an individual, any
distribution from a tax-favored account of such
individual to the extent such distribution--
``(i) is made during a period of
unemployment which does not exceed 2 years, and
``(ii) is used during such period by the
individual to pay qualified living expenses,
qualified health care expenses, or qualified
education or job training expenses.
``(B) Qualified living expenses.--The term
`qualified living expenses' means any of the following
expenses of the taxpayer: rent, acquisition
indebtedness (as defined in section 164(h)(3)(B)),
groceries, repairs with respect to a vehicle or
principal residence (within the meaning of section 121)
of the taxpayer, and any other such necessary and
common expenses of the individuals. Such term shall not
include any prepayment of rent or acquisition
indebtedness.
``(C) Qualified health care expenses.--The term
`qualified health care expenses' means amounts paid by
such individual for medical care (as defined in section
213(d) for such individual, the spouse of such
individual, and any dependent (as defined in section
152, determined without regard to subsections (b)(1),
(b)(2), and (d)(1)(B) thereof) of such individual, but
only to the extent such amounts are not compensated for
by insurance or otherwise.
``(D) Qualified education or job training
expenses.--The term `qualified education or job
training expenses' means any expenses which would (but
for subsection (c)) be qualified tuition and related
expenses for purposes of section 25A(c) (relating to
Lifetime Learning Credit).
``(2) Tax-favored account.--The term `tax-favored account'
means any of the following:
``(A) An eligible retirement plan (as defined in
section 402(c)(8)(B)).
``(B) A health savings account described in section
223.
``(C) A Roth IRA.
``(D) A qualified tuition program described in
section 529.
``(c) Amount Distributed May Be Repaid.--
``(1) In general.--Any individual who receives a qualified
unemployment distribution may make one or more contributions in
an aggregate amount not to exceed the amount of such
distribution to a tax-favored account 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), 223(f)(5), or
529(c)(3)(C), as the case may be.
``(2) Treatment of repayments of distributions from
eligible retirement plans other than iras.--For purposes of
this title, if a contribution is made pursuant to paragraph (1)
with respect to a qualified unemployment 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
unemployment 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.
``(3) Treatment of repayments for distributions from
iras.--For purposes of this title, if a contribution is made
pursuant to paragraph (1) with respect to a qualified
unemployment 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 unemployment
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.
``(4) Other tax-favored accounts.--For purposes of this
title, if a contribution is made pursuant to paragraph (a) with
respect to a qualified unemployment distribution--
``(A) from a health savings account described in
section 223, or
``(B) from a qualified tuition program described in
section 529,
then, to the extent of the amount of the contribution, the
qualified unemployment distribution shall be treated as a
distribution described in section 529(c)(3)(C) or 223(f)(5), as
the case may be, and as having been transferred to such account
or program, as the case may be, within 60 days of the
distribution.
``(d) Denial of Double Benefit.--Any qualified unemployment
distribution with respect to any expense described in (b)(1)(A)(ii)
which is excluded from gross income under this section shall not be
taken into account in determining any deduction or credit under this
chapter relating to such an expense.''.
(b) Clerical Amendment.--The table of sections for part III of
subchapter B of chapter 1 of such Code is amended by inserting after
the item relating to section 139D the following new section:
``Sec. 139E. Distributions from tax-favored account during periods of
unemployment.''.
(c) Effective Date.--The amendments made by this section shall
apply to distributions made after the date of the enactment of this
Act.
<all>
Introduced in House
Introduced in House
Sponsor introductory remarks on measure. (CR E1150)
Referred to the House Committee on Ways and Means.
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