Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Guardsmen and Re-
servists Financial Relief Act of 2004’’.
SEC. 2. PENALTY-FREE WITHDRAWALS FROM RETIREMENT
PLANS FOR INDIVIDUALS CALLED TO ACTIVE
DUTY FOR AT LEAST 179 DAYS.
(a) IN GENERAL.—Paragraph (2) of section 72(t) of
the Internal Revenue Code of 1986 (relating to 10-percent
additional tax on early distributions from qualified retire-
ment plans) is amended by adding at the end the following
new subparagraph:
‘‘(G) DISTRIBUTIONS FROM RETIREMENT
PLANS
TO
INDIVIDUALS
CALLED
TO
ACTIVE
DUTY.—
‘‘(i) IN GENERAL.—Any qualified re-
servist distribution.
‘‘(ii) AMOUNT DISTRIBUTED MAY BE
REPAID.—Any individual who receives a
qualified reservist distribution may, at any
time during the 2-year period beginning on
the day after the end of the active duty pe-
riod, make one or more contributions to an
individual retirement plan of such indi-
vidual in an aggregate amount not to ex-
ceed the amount of such distribution. The
dollar limitations otherwise applicable to
contributions to individual retirement plans
shall not apply to any contribution made
pursuant to the preceding sentence. No de-
duction shall be allowed for any contribu-
tion pursuant to this clause.
‘‘(iii) QUALIFIED
RESERVIST
DIS-
TRIBUTION.—For purposes of this sub-
paragraph, the term ‘qualified reservist
distribution’ means any distribution to an
individual if—
‘‘(I) such distribution is from an
individual retirement plan, or from
amounts attributable to employer con-
tributions made pursuant to elective
deferrals described in subparagraph
(A) or (C) of section 402(g)(3) or sec-
tion 501(c)(18)(D)(iii),
‘‘(II) such individual was (by rea-
son of being a member of a reserve
component (as defined in section 101
of title 37, United States Code)), or-
dered or called to active duty for a pe-
riod in excess of 179 days or for an
indefinite period, and
‘‘(III) such distribution is made
during the period beginning on the
date of such order or call and ending
at the close of the active duty period.
‘‘(iv) 
APPLICATION
OF
SUBPARA-
GRAPH.—This subparagraph applies to in-
dividuals ordered or called to active duty
after September 11, 2001, and before Sep-
tember 12, 2005. In no event shall the 2-
year period referred to in clause (ii) end
before the date which is 2-years after the
date of the enactment of this subpara-
graph.’’.
(b) CONFORMING AMENDMENTS.—
(1) Section 401(k)(2)(B)(i) of such Code is
amended by striking ‘‘or’’ at the end of subclause
(III), by striking ‘‘and’’ at the end of subclause (IV)
and inserting ‘‘or’’, and by inserting after subclause
(IV) the following new subclause:
‘‘(V) the date on which a period
referred 
to 
in 
section
72(t)(2)(G)(iii)(III) begins, and’’.
(2) Section 403(b)(11) of such Code is amend-
ed by striking ‘‘or’’ at the end of subparagraph (A),
by striking the period at the end of subparagraph
(B) and inserting ‘‘, or’’, and by inserting after sub-
paragraph (B) the following new subparagraph:
‘‘(C) for distributions to which section
72(t)(2)(G) applies.’’.
(c) EFFECTIVE DATE.—The amendment made by
this section shall apply to distributions after September
11, 2001.
Passed the House of Representatives April 21, 2004.
Attest:
Clerk.