I 

111TH CONGRESS 

1ST SESSION H. R. 2331 

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

penalty on distributions from qualified retirement plans for mortgage 

payments on qualified residences and in respect of unemployment and 

to increase the age at which distributions from qualified retirement 

plans are required to begin from 701⁄2 to 75. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 7, 2009 

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 penalty on distributions from qualified 

retirement plans for mortgage payments on qualified 

residences and in respect of unemployment and to increase the age at which distributions from qualified retirement plans are required to begin from 701⁄2 to 75. 

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 ‘‘Individual Recovery 

5 Assistance Act of 2009’’. 


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1 SEC. 2. MORATORIUM ON PENALTY FOR EARLY DISTRIBU2 TIONS FROM QUALIFIED RETIREMENT 

3 PLANS. 

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: 

7 ‘‘(I) RECOVERY DISTRIBUTIONS.—In the 

8 case of distributions on or after the date of the 

9 enactment of this subparagraph and before the 

10 end of the 1-year period beginning on such 

11 date, any qualified recovery distribution.’’. 

12 (b) QUALIFIED RECOVERY DISTRIBUTION.—Sub13 section (t) of section 72 of such Code is amended by add14 ing at the end the following new paragraph: 

15 ‘‘(11) QUALIFIED RECOVERY DISTRIBUTION.— 

16 For purposes of paragraph (2)(I)— 

17 ‘‘(A) IN GENERAL.—The term ‘qualified 

18 recovery distribution’ means any distribution 

19 which is— 

20 ‘‘(i) a qualified mortgage distribution, 

21 or 

22 ‘‘(ii) a qualified unemployment dis23 tribution. 

24 ‘‘(B) QUALIFIED MORTGAGE DISTRIBUTION

25 DISTRIBUTIONS.—For purposes of subpara26 graph (A), the term ‘qualified mortgage disVerDate Nov 24 2008 00:38 May 09, 2009 Jkt 079200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H2331.IH H2331

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1 tribution’ means a distribution to the extent 

2 that the aggregate distributions for the taxable 

3 year do not exceed the aggregate payments of 

4 the taxpayer for the taxable year for principal, 

5 interest, escrow for real estate taxes and prop6 erty insurance, and mortgage insurance with re7 spect to any residence that is a qualified resi8 dence (as defined in section 163(h)(4)(A)) of 

9 the taxpayer for the taxable year. 

10 ‘‘(C) QUALIFIED UNEMPLOYMENT DIS11 TRIBUTION.—For purposes of subparagraph 

12 (A)— 

13 ‘‘(i) IN GENERAL.—The term ‘quali14 fied unemployment distribution’ means a 

15 distribution to an individual after separa16 tion from employment if— 

17 ‘‘(I) such individual has received 

18 unemployment compensation for 12 

19 consecutive weeks under any Federal 

20 or State unemployment compensation 

21 law by reason of such separation, and 

22 ‘‘(II) such distribution is made 

23 during any taxable year during which 

24 such unemployment compensation is 

25 paid or the succeeding taxable year. 


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1 ‘‘(ii) DISTRIBUTIONS AFTER REEM2 PLOYMENT AND SELF-EMPLOYED INDIVID3 UALS.—Rules similar to the rules of 

4 clauses (ii) and (iii) of paragraph (2)(D) 

5 shall apply. 

6 ‘‘(D) COORDINATION.—Distributions shall 

7 not be taken into account under subparagraph 

8 (A) if such distributions are described in sub9 paragraph (A), (C), (D), (E), (F), or (G) of 

10 paragraph (2) or to the extent paragraph (1) 

11 does not apply to such distributions by reason 

12 of paragraph (2)(B).’’. 

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

14 this section shall apply to distributions on or after the date 

15 of the enactment of this Act. 

16 SEC. 3. INCREASE IN AGE FOR REQUIRED DISTRIBUTIONS. 

17 (a) IN GENERAL.—Subparagraphs (B)(iv)(I) and (C) 

18 of section 401(a)(9) of the Internal Revenue Code of 1986 

are amended by striking ‘‘701 19 ⁄2’’ each place it occurs and 

20 inserting ‘‘75’’. 

21 (b) CONFORMING AMENDMENTS.— 

22 (1) Section 219(d)(1) of such Code is amended 

by striking ‘‘701 23 ⁄2’’ in the heading and the text and 

24 inserting ‘‘75’’. 


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1 (2) Section 408(b)(4) of such Code is amended 

by striking ‘‘701 2 ⁄2’’ and inserting ‘‘75’’. 

3 (3) 408(d)(8)(B)(ii) of such Code is amended 

by striking ‘‘701 4 ⁄2’’ and inserting ‘‘75’’. 

5 (4) 408A(c)(4) of such Code is amended by 

striking ‘‘701 6 ⁄2’’ in the heading and the text and in7 serting ‘‘75’’. 

8 (5) Section 457(d)(1)(A)(i) of such Code is 

amended by striking ‘‘701 9 ⁄2’’ and inserting ‘‘75’’. 

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

11 this subsection shall apply to years beginning after the 

12 date of the enactment of this Act. 

Æ 


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