I 

108TH CONGRESS 

1ST SESSION H. R. 320

To amend the Internal Revenue Code of 1986 to allow expanded penaltyfree withdrawals from certain retirement plans during periods of unemployment for any employee of an air carrier or of a manufacturer of 

aircraft or parts or components of aircraft. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 8, 2003

Mr. TIAHRT 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 expanded penalty-free withdrawals from certain retirement 

plans during periods of unemployment for any employee 

of an air carrier or of a manufacturer of aircraft or 

parts or components of aircraft.

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 ‘‘Aviation Employee As5 sistance Relief Act’’. 
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1 SEC. 2. DISTRIBUTIONS FROM CERTAIN PLANS MAY BE 

2 USED WITHOUT PENALTY DURING PERIODS 

3 OF UNEMPLOYMENT. 

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

5 the Internal Revenue Code of 1986 (relating to exceptions 

6 to 10-percent additional tax on early distributions from 

7 qualified retirement plans) is amended by adding at the 

8 end the following new subparagraph: 

9 ‘‘(G) ADDITIONAL DISTRIBUTIONS TO IN10 DIVIDUALS SEPARATED FROM EMPLOYMENT BY

11 AIR CARRIERS, AIRCRAFT MANUFACTURERS, OR

12 MANUFACTURERS OF PARTS OR COMPONENTS

13 OF AIRCRAFT.—

14 ‘‘(i) IN GENERAL.—Distributions from 

15 an individual retirement plan, or from 

16 amounts attributable to employer contribu17 tions made pursuant to elective deferrals 

18 described in subparagraph (A) or (C) of 

19 section 402(g)(3) or section 

20 501(c)(18)(D)(iii), to an individual after 

21 separation from qualified employment if—

22 ‘‘(I) such individual has received 

23 unemployment compensation for 12 

24 consecutive weeks under any Federal 

25 or State unemployment compensation 

26 law by reason of such separation, and 
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1 ‘‘(II) such distributions are made 

2 during the period beginning on the 

3 date of such separation and ending on 

4 June 30, 2003. 

5 ‘‘(ii) QUALIFIED EMPLOYMENT.—For 

6 purposes of this subparagraph, the term 

7 ‘qualified employment’ means employment 

8 by an air carrier (as defined in section 

9 4102 of title 49, United States Code), by 

10 an aircraft manufacturer, or by a manu11 facturer of parts or components of aircraft. 

12 ‘‘(iii) DISTRIBUTIONS AFTER REEM13 PLOYMENT.—Clause (i) shall not apply to 

14 any distribution made after the individual 

15 has been employed on a fulltime basis for 

16 at least 60 days after the separation from 

17 employment to which clause (i) applies. 

18 ‘‘(iv) COORDINATION WITH SUBPARA19 GRAPH (D).—Distributions during the pe20 riod described in clause (i)(II) shall not be 

21 taken into account in applying the limita22 tion under subparagraph (D)(i)(III).’’ 

23 (b) CONFORMING AMENDMENTS.—

24 (1) Section 401(k)(2)(B)(i) of such Code is 

25 amended by striking ‘‘or’’ at the end of subclause 
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1 (III), by striking ‘‘and’’ at the end of subclause (IV) 

2 and inserting ‘‘or’’, and by inserting after subclause 

3 (IV) the following new subclause: 

4 ‘‘(V) the date on which a period 

5 referred to in section 72(t)(2)(G) be6 gins, and’’. 

7 (2) Section 403(b)(11) of such Code is amend8 ed by striking ‘‘or’’ at the end of subparagraph (A), 

9 by striking the period at the end of subparagraph 

10 (B) and inserting ‘‘, or’’, and by inserting after sub11 paragraph (B) the following new subparagraph: 

12 ‘‘(C) for distributions to which section 

13 72(t)(2)(G) applies.’’

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

15 this section shall apply to distributions after the date of 

16 the enactment of this Act.

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