I 

110TH CONGRESS 

2D SESSION H. R. 5641 

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

from certain individual retirement plans. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 14, 2008 

Mr. MCCOTTER (for himself and Mr. PAUL) 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 2008’’. 

6 SEC. 2. HARDSHIP LOANS FROM CERTAIN INDIVIDUAL RE7 TIREMENT PLANS. 

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

9 amended by adding at the end the following new subpara10 graph: 


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1 ‘‘(H) HARDSHIP LOANS FROM CERTAIN IN2 DIVIDUAL RETIREMENT PLANS.— 

3 ‘‘(i) IN GENERAL.—Any qualified 

4 hardship loan. 

5 ‘‘(ii) QUALIFIED HARDSHIP LOAN.— 

6 For purposes of this subparagraph, the 

7 term ‘qualified hardship loan’ means any 

8 distribution to an individual from a quali9 fied individual retirement plan of such in10 dividual upon hardship of such individual 

11 (within the meaning of section 

12 401(k)(2)(B)(i)(IV)) if one or more con13 tributions to a qualified individual retire14 ment plan of such individual in an aggre15 gate amount equal to such distribution are 

16 made during the 5-year period beginning 

17 on the date of such distribution. 

18 ‘‘(iii) QUALIFIED INDIVIDUAL RETIRE19 MENT PLAN.—For purposes of this sub20 paragraph, the term ‘qualified individual 

21 retirement plan’ means an individual re22 tirement plan other than a Roth IRA. 

23 ‘‘(iv) LIMITATION ON AMOUNT OF

24 LOAN.—Such term shall not include any 

25 loan unless the amount of such loan (when 


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1 added to the outstanding balance of all 

2 other hardship loans from Qualified indi3 vidual retirement plans of such individual) 

4 does not exceed $50,000. 

5 ‘‘(v) TREATMENT OF RECONTRIBU6 TIONS.—In the case of any contribution to 

7 a qualified individual retirement plan taken 

8 into account under clause (ii)— 

9 ‘‘(I) the dollar limitations other10 wise applicable to contributions to 

11 qualified individual retirement plans 

12 shall not apply to such contribution, 

13 and 

14 ‘‘(II) no deduction shall be al15 lowed for such contribution. 

16 ‘‘(vi) FAILURE TO REPAY.—In the 

17 case of a failure to make the aggregate 

18 amount of contributions described in clause 

19 (ii) during the 5-year period described 

20 therein, the penalty determined under 

21 paragraph (1) shall be imposed for the tax22 able year in which such 5-year period ends 

23 in lieu of the taxable year in which the dis24 tribution was made.’’. 


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

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

3 month period beginning on the date of the enactment of 

4 this Act. 

Æ 


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