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[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 1714 Introduced in Senate (IS)]

106th CONGRESS
  1st Session
                                S. 1714

   To amend the Internal Revenue Code of 1986 to allow penalty-free 
 distributions from qualified retirement plans of individuals residing 
               in presidentially declared disaster areas.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                            October 8, 1999

  Mr. Warner introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL

 
   To amend the Internal Revenue Code of 1986 to allow penalty-free 
 distributions from qualified retirement plans of individuals residing 
               in presidentially declared disaster areas.

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

SECTION 1. PENALTY-FREE DISTRIBUTIONS FROM QUALIFIED RETIREMENT PLANS 
              OF INDIVIDUALS RESIDING IN PRESIDENTIALLY DECLARED 
              DISASTER AREAS.

    (a) In General.--Section 72(t)(2) of the Internal Revenue Code of 
1986 (relating to exceptions to 10-percent additional tax on early 
distributions) is amended by adding at the end the following new 
subparagraph:
                    ``(G) Distributions for disaster-related 
                expenses.--Distributions which are qualified disaster-
                related distributions.''.
    (b) Qualified Disaster-Related Distributions.--Section 72(t) of the 
Internal Revenue Code of 1986 is amended by adding at the end the 
following new paragraph:
            ``(9) Qualified disaster-related distributions.--For 
        purposes of paragraph (2)(G)--
                    ``(A) In general.--The term `qualified disaster-
                related distribution' means any payment or distribution 
                received by an individual residing in a disaster area 
                on the date of the determination referred to in 
                subparagraph (B) to the extent that the payment or 
                distribution is used by such individual within 90 days 
                of the payment or distribution. Such term shall only 
                include any payment or distribution which is made 
                during the 1-year period beginning on the date of the 
                determination referred to in subparagraph (B).
                    ``(B) Disaster area.--The term `disaster area' 
                means an area determined by the President to warrant 
                assistance by the Federal Government under the Robert 
                T. Stafford Disaster Relief and Emergency Assistance 
                Act.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to payments and distributions received after July 31, 1999, by 
individuals residing in areas warranting assistance as determined by 
the President after such date.
                                 <all>
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