Dave Thomas Adoption Act of 2013 - Amends the Internal Revenue Code to allow penalty-free withdrawals, up to $10,000, from individual retirement accounts (IRAs) if used to pay adoption expenses, and unlimited withdrawals for expenses related to the adoption of a special needs child.
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1476 Introduced in House (IH)]
113th CONGRESS
1st Session
H. R. 1476
To amend the Internal Revenue Code of 1986 to allow penalty-free
withdrawals from individual retirement plans for adoption expenses.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 10, 2013
Mr. King of New York (for himself, Mr. Rangel, Mr. Grimm, Mr. Huizenga
of Michigan, Ms. Wilson of Florida, and Mr. Rodney Davis of Illinois)
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 penalty-free
withdrawals from individual retirement plans for adoption expenses.
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 ``Dave Thomas Adoption Act of 2013''.
SEC. 2. PENALTY-FREE WITHDRAWALS FROM INDIVIDUAL RETIREMENT PLANS FOR
ADOPTION EXPENSES.
(a) In General.--Paragraph (2) of section 72(t) of the Internal
Revenue Code of 1986 is amended by adding at the end the following new
subparagraph:
``(H) Qualified adoption expenses.--
``(i) In general.--Distributions from an
individual retirement plan to the extent that
the amount of such distributions does not
exceed the lesser of--
``(I) $10,000 for the taxable year
with respect to the adoption of a
child, or
``(II) the amount determined under
clause (ii).
``(ii) Determination of expenses not
covered by credit.--The amount determined under
this clause is the excess (if any) of--
``(I) the qualified adoption
expenses (as defined in section 23(d))
paid by the taxpayer during the taxable
year with respect to the adoption of
such child, over
``(II) the amount of the credit
allowable under section 23 for such
expenses (determined as if such credit
were allowed for such year without
regard to any limitation based on
liability for tax).
``(iii) Special rules for child with
special needs.--In the case of an adoption of a
child with special needs (as defined in section
23(d)(3))--
``(I) subclauses (I) and (II) of
clause (i) shall not apply, and
``(II) a distribution during the
applicable period from an individual
retirement plan with respect to such
adoption shall not be taken into
account under this subparagraph to the
extent that such distribution, when
added to all other distributions with
respect to such adoption from
individual retirement plans for the
applicable period, exceeds $10,000.
For purposes of subclause (II), the term
`applicable period' means the 3-taxable year
period beginning with the taxable year in which
such adoption becomes final.
``(iv) Ordering rule.--Distributions shall
not be taken into account under clause (i) if
such distributions are described in
subparagraph (A), (C), (D), (E), (F), or (G) or
to the extent paragraph (1) does not apply to
such distributions by reason of subparagraph
(B).''.
(b) Effective Date.--The amendment made by this section shall apply
to distributions after the date of the enactment of this Act.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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