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[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 463 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 463

To amend the Internal Revenue Code of 1986 to allow farmers who reside 
in disaster areas or who have a substantial drop in farm income to make 
 penalty-free withdrawals from individual retirement accounts and from 
                    certain other retirement plans.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            January 6, 1993

 Mr. Kopetski 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 farmers who reside 
in disaster areas or who have a substantial drop in farm income to make 
 penalty-free withdrawals from individual retirement accounts and from 
                    certain other retirement plans.

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

SECTION 1. PENALTY-FREE WITHDRAWALS FROM CERTAIN RETIREMENT PLANS FOR 
              FARMERS WHO RESIDE IN DISASTER AREAS OR WHO HAVE A 
              SUBSTANTIAL DROP IN FARM INCOME.

    (a) In General.--Paragraph (2) of section 72(t) of the Internal 
Revenue Code of 1986 (relating to exceptions) is amended by adding at 
the end thereof the following new subparagraph:
                    ``(D) Distributions to farmers residing in disaster 
                or suffering a substantial decline in farm income.--Any 
                distribution to an eligible farmer (as defined in 
                paragraph (5)) from--
                            ``(i) an individual retirement account, or
                            ``(ii) a qualified retirement plan which 
                        provides contributions or benefits for 
                        employees some or all of whom are owner-
                        employees (as defined in section 401(c)(3)).''
    (b) Eligible Farmer.--Subsection (t) of section 72 of such Code is 
amended by redesignating paragraph (5) as paragraph (6) and by 
inserting after paragraph (4) the following new paragraph:
            ``(5) Eligible farmer.--For purposes of paragraph (2)(D)--
                    ``(A) In general.--The term `eligible farmer' means 
                any individual who is engaged in the trade or business 
                of farming if--
                            ``(i) such individual resides, and such 
                        individual's farm is located, in an area 
                        declared to be a disaster area by the chief 
                        executive of the State in which such area is 
                        located, or
                            ``(ii) such individual's farm income for 
                        the taxable year during which the distribution 
                        is made is 65 percent or less of the average of 
                        such individual's farm income for the 5 
                        preceding taxable years.
                    ``(B) Disaster distributions must be made within 2 
                years.--Paragraph (2)(D) shall not apply to a 
                distribution by reason of subparagraph (A)(i) of this 
                paragraph unless the distribution is made not more than 
                2 years after the date of the disaster declaration.''
    (c) Effective Date.--The amendments made by this section shall 
apply to distributions after the date of the enactment of this Act.

                                 <all>
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