[Congressional Bills 103th Congress] [From the U.S. Government Publishing Office] [S. 327 Introduced in Senate (IS)] 103d CONGRESS 1st Session S. 327 To amend the Internal Revenue Code of 1986 to permit rollovers into individual retirement accounts of separation pay from the Armed Forces. _______________________________________________________________________ IN THE SENATE OF THE UNITED STATES February 4 (legislative day, January 5), 1993 Mr. Murkowski (for himself, Mr. Bumpers, Mr. Durenberger, Mr. Glenn, and Mr. Hatfield) introduced the following bill; which was read twice and referred to the Committee on Finance _______________________________________________________________________ A BILL To amend the Internal Revenue Code of 1986 to permit rollovers into individual retirement accounts of separation pay from the Armed Forces. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. That this Act may be cited as the ``Military Separation Retirement Benefits Act of 1993''. SEC. 2. IRA ROLLOVERS OF MILITARY SEPARATION PAY. (a) In General.--Section 402(a)(6) of the Internal Revenue Code of 1986 (relating to special rollover rules) is amended by adding at the end thereof the following new subparagraph: ``(J) Military separation pay.--If-- ``(i) an individual receives separation pay under section 1174 or 1174a of title 10, United States Code, and ``(ii) such individual transfers any portion of such pay within 60 days after the receipt of such pay to an eligible retirement plan described in subclause (I) or (II) of paragraph (5)(E)(iv), then the portion of the pay so transferred shall be treated as a transfer from a qualified trust which meets the requirements of paragraph (5) and which is a transfer of a distribution of amounts other than employee contributions.'' (b) Effective Date.-- (1) In general.--The amendment made by subsection (a) shall apply to pay received after December 5, 1991. (2) Transition rule.--In the case of any payment received after December 5, 1991, and before the date of the enactment of this Act, the 60-day transfer requirement of section 402(a)(6)(J)(ii) of the Internal Revenue Code of 1986 (as added by subsection (a)) shall be treated as met if the taxpayer transfers the payment to an eligible retirement plan within 1 year after such date of enactment. <all>