Unemployed Worker Assistance Act of 2011 - Amends the Internal Revenue Code to allow unemployed individuals who have exhausted all rights to unemployment compensation under federal or state law to make penalty-free withdrawals from tax-exempt pension and retirement plans.
[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3234 Introduced in House (IH)]
112th CONGRESS
1st Session
H. R. 3234
To amend the Internal Revenue Code of 1986 to allow penalty-free
withdrawals from pension plans for unemployed individuals who have
exhausted their rights to unemployment compensation.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
October 14, 2011
Mr. Platts (for himself and Mr. Lynch) 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 pension plans for unemployed individuals who have
exhausted their rights to unemployment compensation.
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 ``Unemployed Worker Assistance Act of
2011''.
SEC. 2. PENALTY-FREE WITHDRAWALS FOR THE UNEMPLOYED WHO HAVE EXHAUSTED
THEIR RIGHTS TO UNEMPLOYMENT COMPENSATION.
(a) In General.--Paragraph (2) of section 72(t) of the Internal
Revenue Code of 1986 (relating to subsection not to apply to certain
distributions) is amended by adding at the end the following new
subparagraph:
``(H) Distributions to unemployed individuals who
have exhausted their rights to unemployment
compensation.--
``(i) In general.--Distributions to an
individual after separation from employment
if--
``(I) such individual exhausted all
rights to unemployment compensation
under any Federal or State unemployment
compensation law with respect to such
separation, and
``(II) such distribution is made
while such rights are exhausted and
before reemployment or self-employment.
``(ii) Amount distributed may be repaid.--
``(I) In general.--Any individual
who receives a qualified distribution
may, at any time during the 5-year
period beginning on the day after the
date on which such distribution was
received, make one or more
contributions in an aggregate amount
not to exceed the amount of such
distribution to an eligible retirement
plan 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), as the case may be.
``(II) Treatment of repayments of
distributions from eligible retirement
plans other than iras.--For purposes of
this title, if a contribution is made
pursuant to subclause (I) with respect
to a qualified 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
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.
``(III) Treatment of repayments for
distributions from iras.--For purposes
of this title, if a contribution is
made pursuant to subclause (I) with
respect to a qualified 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
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.
``(iii) Special rules.--
``(I) Qualified distributions
treated as meeting plan distribution
requirements.--For purposes of this
title, a qualified distribution shall
be treated as meeting the requirements
of sections 401(k)(2)(B)(i),
403(b)(7)(A)(ii), 403(b)(11), and
457(d)(1)(A).
``(II) Exemption of distributions
from trustee to trustee transfer and
withholding rules.--For purposes of
sections 401(a)(31), 402(f), and 3405,
qualified distributions shall not be
treated as eligible rollover
distributions.
``(iv) Definitions.--For purposes of this
subparagraph--
``(I) Qualified distribution.--The
term `qualified distribution' means any
distribution meeting the requirements
of clause (i).
``(II) Eligible retirement plan.--
The term `eligible retirement plan' has
the meaning given such term by section
402(c)(8)(B).
``(v) Reemployment and self-employment.--
Rules similar to the rules of clauses (ii) and
(iii) of subparagraph (D) shall apply for
purposes of this subparagraph.''.
(b) Effective Date.--The amendment made by subsection (a) shall
apply to distributions made 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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