I 

111TH CONGRESS 

1ST SESSION H. R. 1628 

To amend the Internal Revenue Code of 1986 to permit hardship loans 

from certain individual retirement plans. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 19, 2009 

Mr. MCCOTTER (for himself, Mr. PAUL, Mr. SESSIONS, Mr. LEE of New 

York, Mr. CASTLE, Mr. POSEY, Mr. SOUDER, Mr. GERLACH, and Mr. 

MARCHANT) 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 permit 

hardship loans from certain individual retirement plans. 

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 ‘‘IRA Assistance Act 

5 of 2009’’. 


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1 SEC. 2. HARDSHIP LOANS FROM CERTAIN INDIVIDUAL RE2 TIREMENT PLANS. 

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

4 the Internal Revenue Code of 1986 is amended by adding 

5 at the end the following new subparagraph: 

6 ‘‘(H) HARDSHIP LOANS FROM CERTAIN IN7 DIVIDUAL RETIREMENT PLANS.— 

8 ‘‘(i) IN GENERAL.—Any qualified 

9 hardship loan. 

10 ‘‘(ii) QUALIFIED HARDSHIP LOAN.— 

11 For purposes of this subparagraph, the 

12 term ‘qualified hardship loan’ means any 

13 distribution to an individual from a quali14 fied individual retirement plan of such in15 dividual upon hardship of such individual 

16 (within the meaning of section 

17 401(k)(2)(B)(i)(IV)) if one or more con18 tributions to a qualified individual retire19 ment plan of such individual in an aggre20 gate amount equal to such distribution are 

21 made during the 5-year period beginning 

22 on the date of such distribution. 

23 ‘‘(iii) QUALIFIED INDIVIDUAL RETIRE24 MENT PLAN.—For purposes of this sub25 paragraph, the term ‘qualified individual 


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1 retirement plan’ means an individual re2 tirement plan other than a Roth IRA. 

3 ‘‘(iv) LIMITATION ON AMOUNT OF

4 LOAN.—Such term shall not include any 

5 loan unless the amount of such loan (when 

6 added to the outstanding balance of all 

7 other hardship loans from Qualified indi8 vidual retirement plans of such individual) 

9 does not exceed $50,000. 

10 ‘‘(v) TREATMENT OF RECONTRIBU11 TIONS.—In the case of any contribution to 

12 a qualified individual retirement plan taken 

13 into account under clause (ii)— 

14 ‘‘(I) the dollar limitations other15 wise applicable to contributions to 

16 qualified individual retirement plans 

17 shall not apply to such contribution, 

18 and 

19 ‘‘(II) no deduction shall be al20 lowed for such contribution. 

21 ‘‘(vi) FAILURE TO REPAY.—In the 

22 case of a failure to make the aggregate 

23 amount of contributions described in clause 

24 (ii) during the 5-year period described 

25 therein, the penalty determined under 


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1 paragraph (1) shall be imposed for the tax2 able year in which such 5-year period ends 

3 in lieu of the taxable year in which the dis4 tribution was made.’’. 

5 (b) EFFECTIVE DATE.—The amendment made by 

6 this section shall apply to distributions made after the 6- 

7 month period beginning on the date of the enactment of 

8 this Act. 

Æ 


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