I 

112TH CONGRESS 

2D SESSION H. R. 4279 

To amend the Internal Revenue Code of 1986 to waive the 10 percent 

early distribution penalty with respect to withdrawals by unemployed 

veterans from certain retirement accounts. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 28, 2012 

Mr. YOUNG of Indiana (for himself, Mr. HULTGREN, and Mr. LATTA) 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 waive 

the 10 percent early distribution penalty with respect 

to withdrawals by unemployed veterans from certain retirement accounts. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Veteran Self Relief 

5 Act of 2012’’. 


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1 SEC. 2. CERTAIN DISTRIBUTIONS FROM RETIREMENT AC2 COUNTS OF UNEMPLOYED VETERANS NOT 

3 SUBJECT TO 10 PERCENT PENALTY. 

4 (a) IN GENERAL.—Paragraph (2) of section 72(t) of 

5 the Internal Revenue Code of 1986 is amended by adding 

6 at the end the following new subparagraph: 

7 ‘‘(H) CERTAIN DISTRIBUTIONS TO UNEM8 PLOYED VETERANS.—Any qualified unemployed 

9 veteran distribution.’’. 

10 (b) DEFINITIONS.—Subsection (t) of section 72 of 

11 such Code is amended by adding at the end the following 

12 new paragraph: 

13 ‘‘(11) QUALIFIED UNEMPLOYED VETERAN DIS14 TRIBUTION.—For purposes of this paragraph and 

15 paragraph (2)(H)— 

16 ‘‘(A) QUALIFIED UNEMPLOYED VETERAN

17 DISTRIBUTION.—The term ‘qualified unem18 ployed veteran distribution’ means any distribu19 tion to a veteran (as defined in section 101 of 

20 title 38, United States Code) from a specified 

21 account if such distribution is made during a 

22 qualified unemployment-related distribution pe23 riod. 

24 ‘‘(B) SPECIFIED ACCOUNT.—The term 

25 ‘specified account’ means— 


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1 ‘‘(i) any individual retirement account 

2 of the veteran, and 

3 ‘‘(ii) the Thrift Savings Fund estab4 lished under section 8437 of title 5, United 

5 States Code. 

6 ‘‘(C) QUALIFIED UNEMPLOYMENT-RE7 LATED DISTRIBUTION PERIOD.— 

8 ‘‘(i) IN GENERAL.—The term ‘quali9 fied unemployment-related distribution pe10 riod’ means so much of any qualified un11 employment period as is after the 12 con12 secutive weeks referred to in clause (ii)(I). 

13 ‘‘(ii) QUALIFIED UNEMPLOYMENT PE14 RIOD.—The term ‘qualified unemployment 

15 period’ means, with respect to any veteran, 

16 any uninterrupted period of unemployment 

17 if— 

18 ‘‘(I) such veteran receives unem19 ployment compensation for 12 con20 secutive weeks under any Federal or 

21 State unemployment compensation 

22 law during such uninterrupted period, 

23 and 

24 ‘‘(II) such uninterrupted period 

25 begins during the 1-year period beginVerDate Mar 15 2010 00:43 Apr 04, 2012 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H4279.IH H4279

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1 ning on the date of such veteran’s dis2 charge or release which is referred to 

3 in section 101 of title 38, United 

4 States Code, with respect to such vet5 eran.’’. 

6 (c) EFFECTIVE DATE.—The amendments made by 

7 this section shall apply to distributions made after the 

8 date of the enactment of this Act. 

Æ 


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