I
103D CONGRESS
1ST SESSION
H. R. 527
To amend the Internal Revenue Code of 1986 to permit individuals who
withdrew certain amounts from individual retirement accounts to
recontribute such amounts.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 21, 1993
Mr. NEAL of Massachusetts 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
individuals who withdrew certain amounts from individ-
ual retirement accounts to recontribute such amounts.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
That (a) section 219 of the Internal Revenue Code of
1986 (relating to retirement savings) is amended by redes-
ignating subsection (h) as subsection (i) and by inserting
after subsection (g) the following new subsection:
‘‘(h) RESTORATION OF CERTAIN EARLY WITHDRAW-
ALS.—
‘‘(1) IN GENERAL.—If an individual received a
distribution described in paragraph (4) from an indi-
vidual 
retirement 
plan, 
such 
individual 
may
recontribute such distribution to an individual retire-
ment plan in the manner provided in this subsection.
‘‘(2) METHOD OF MAKING RECONTRIBUTION.—
Any recontribution of a distribution described in
paragraph (4) received by any individual—
‘‘(A) may be made only during the 5-year
period beginning on the later of the date on
which such distribution was received or the date
of the enactment of this subsection,
‘‘(B) shall not exceed the amount of such
distribution reduced by any prior recontribution
under this subsection with respect to such dis-
tribution, and
‘‘(C) shall be made by making a payment
in cash to an individual retirement plan for the
benefit of such individual.
An 
individual 
making 
a 
contribution 
as
recontribution under this subsection shall designate
(in the manner prescribed by the Secretary) such
contribution as a recontribution under this sub-
section and shall specify the distribution in respect
of which such recontribution is being made.
‘‘(3) TREATMENT OF RECONTRIBUTION.—
‘‘(A) DEDUCTION ALLOWED.—There shall
be allowed as a deduction to an individual mak-
ing a recontribution under this subsection an
amount which bears the same ratio to the
amount of such recontribution as the portion of
the distribution (with respect to which such
recontribution is being made) which was includ-
ible in gross income bears to the entire amount
of such distribution. Such deduction shall be al-
lowed for the taxable year in which such
recontribution is made.
‘‘(B) TREATED AS ROLLOVER CONTRIBU-
TION.—Any recontribution under this sub-
section shall be treated as a rollover contribu-
tion described in section 408(d)(3) for purposes
of this section (other than this subsection), sec-
tion 408, and section 4973.
‘‘(4) DISTRIBUTIONS
TO
WHICH
SUBSECTION
APPLIES.—A distribution is described in this para-
graph if—
‘‘(A) such distribution is received during
the 6-year period beginning on the date 3 years
before the date of the enactment of this sub-
section, and
‘‘(B) an additional tax was imposed under
section 72(t) with respect to such distribution.’’
(b) The amendment made by subsection (a) shall
apply to taxable years ending after the date of the enact-
ment of this Act.
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