[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7277 Introduced in House (IH)]
110th CONGRESS
2d Session
H. R. 7277
To suspend the beginning date for required distributions from certain
retirement plans, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
November 19, 2008
Mr. Frelinghuysen (for himself and Mr. Bachus) introduced the following
bill; which was referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To suspend the beginning date for required distributions from certain
retirement plans, and for other purposes.
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 ``Temporary IRA Distribution
Suspension Act of 2008''.
SEC. 2. SUSPENSION OF REQUIRED BEGINNING DATE FOR DISTRIBUTIONS FROM
DEFINED CONTRIBUTION PLANS.
(a) In General.--In the case of a defined contribution plan--
(1) section 401(a)(9) of the Internal Revenue Code of 1986
shall not apply during the suspension period,
(2) in lieu of the calendar year specified in subparagraph
(C)(i) of section 401(a)(9) of such Code, the calendar year
specified in such subparagraph shall be the later of--
(A) the calendar year described in such
subparagraph (C)(i), or
(B) calendar year 2010, and
(3) the suspension period shall not be taken into account
for purposes of applying any time limitation in such section
401(a)(9).
(b) Suspension Period.--For purposes of this section, the term
``suspension period'' means the period beginning on January 1, 2008,
and ending on December 31, 2009.
(c) Application to Certain Other Plans.--The following sections
shall be applied for the suspension period under rules similar to the
rules of subsection (a) of this section--
(1) in the case of a defined contribution plan, subsections
(a) and (b) of section 403, and sections 408 and 408A, of such
Code, and
(2) in the case of an eligible deferred compensation plan
described in section 457(b) of such Code which is maintained by
an eligible employer described in section 457(e)(1)(A)) of such
Code, section 457 of such Code.
(d) Application to Certain Periodic Payments.--For purposes of this
section, in the case of a defined contribution plan, the failure to
make a payment from a qualified retirement plan during the suspension
period in an amount less than would be required under the applicable
method shall not be treated as a modification for purposes of section
72(t)(2)(A)(iv) of such Code.
(e) Provisions Relating to Plan Amendments.--
(1) In general.--If this section applies to any plan or
annuity contract, such plan or contract shall be treated as
being operated in accordance with the terms of the plan during
the period described in paragraph (2)(B)(i).
(2) Amendments to which section applies.--
(A) In general.--This section shall apply to any
amendment to any plan or annuity contract which is
made--
(i) pursuant to this section or pursuant to
any regulation issued by the Secretary of the
Treasury to carry out this section, and
(ii) on or before the last day of the first
plan year beginning on or after January 1,
2009.
(B) Conditions.--This section shall not apply to
any amendment unless--
(i) during the period--
(I) beginning on the first day of
the suspension period, and
(II) ending on the date described
in subparagraph (A)(ii) (or, if
earlier, the date the plan or contract
amendment is adopted), the plan or
contract is operated as if such plan or
contract amendment were in effect, and
(ii) such plan or contract amendment
applies retroactively for such period.
(f) Effective Date.--
(1) In general.--This section shall take effect on the date
of the enactment of this Act.
(2) Recontribution of distributions before date of
enactment.--
(A) In general.--Any individual who receives a
payment or distribution during the period beginning on
January 1, 2008, and ending on the date of the
enactment of this Act from a plan to which subsection
(a) or (c) of this section applies may, before the end
of the suspension period, make one or more
contributions in an aggregate amount not to exceed the
amount of such payments or distributions 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) of such
Code, as the case may be.
(B) Treatment of repayments of distributions from
eligible retirement plans other than iras.--For
purposes of the Internal Revenue Code of 1986, if a
contribution is made pursuant to subparagraph (A) to 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 such payments or distributions in an eligible
rollover distribution (as defined in section 402(c)(4)
of such Code) and as having transferred the amount to
the eligible retirement plan in a direct trustee to
trustee transfer within 60 days of the distribution.
(C) Treatment of repayments for distributions from
iras.--For purposes of the Internal Revenue Code of
1986, if a contribution is made pursuant to
subparagraph (A) to an individual retirement plan (as
defined by section 7701(a)(37) of such Code), then, to
the extent of the amount of the contribution, such
payments or distributions shall be treated as a
distribution described in section 408(d)(3) of such
Code and as having been transferred to the individual
retirement plan in a direct trustee to trustee transfer
within 60 days of the distribution.
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