I 
110TH CONGRESS 
1ST SESSION H. R. 4061 
To allow employees of a commercial passenger airline carrier who receive 
payments in a bankruptcy proceeding to roll over such payments into 
an individual retirement plan, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
NOVEMBER 1, 2007 
Mr. LEWIS of Georgia (for himself, Mr. CAMP of Michigan, Mr. CROWLEY, 
and Mr. LEWIS of Kentucky) introduced the following bill; which was re-
ferred to the Committee on Ways and Means 
A BILL 
To allow employees of a commercial passenger airline carrier 
who receive payments in a bankruptcy proceeding to 
roll over such payments into an individual retirement 
plan, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. ROLLOVER OF AMOUNTS RECEIVED IN AIRLINE 
CARRIER BANKRUPTCY TO ELIGIBLE RETIRE-
MENT PLANS. 
(a) GENERAL RULE.—If— 
(1) a qualified airline employee receives any eli-
gible rollover amount, and 
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(2) the qualified airline employee transfers any 
portion of such amount to an individual retirement 
plan (as defined in section 7701(a)(37) of the Inter-
nal Revenue Code of 1986) within 180 days of re-
ceipt of such amount (or, if later, within 180 days 
of the date of the enactment of this Act), 
then, except as provided in subsection (b), such amount 
(to the extent so transferred) shall not be includible in 
gross income for the taxable year in which paid. 
(b) TRANSFERS TO ROTH IRAS.— 
(1) IN GENERAL.—If a transfer described in 
subsection (a) is made to a Roth IRA (as defined in 
section 408A of the Internal Revenue Code of 1986), 
then— 
(A) 50 percent of the portion of any eligi-
ble rollover amount so transferred shall be in-
cludible in gross income in the first taxable year 
following the taxable year in which the eligible 
rollover amount was paid, and 
(B) 50 percent of such portion shall be in-
cludible in gross income in the second taxable 
year following the taxable year in which the eli-
gible rollover amount was paid. 
(2) ELECTION TO INCLUDE IN INCOME IN YEAR 
OF
PAYMENT.—Notwithstanding paragraph (1), a 
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the transfer shall be treated as a qualified rollover 
contribution described in section 408A(e) of such 
Code. 
(d) DEFINITIONS AND SPECIAL RULES.—For pur-
poses of this section— 
(1) ELIGIBLE ROLLOVER AMOUNT.— 
(A) IN GENERAL.—The term ‘‘eligible roll-
over amount’’ means any payment of any 
money or other property which is payable by a 
commercial passenger airline carrier to a quali-
fied airline employee— 
(i) under the approval of an order of 
a Federal bankruptcy court in a case filed 
after September 11, 2001, and before Jan-
uary 1, 2007, and 
(ii) in respect of the qualified airline 
employee’s interest in a bankruptcy claim 
against the carrier, any note of the carrier 
(or amount paid in lieu of a note being 
issued), or any other fixed obligation of the 
carrier to pay a lump sum amount. 
(B) 
EXCEPTION.—An 
eligible 
rollover 
amount shall not include any amount payable 
on the basis of the carrier’s future earnings or 
profits. 
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(2) QUALIFIED AIRLINE EMPLOYEE.—The term 
‘‘qualified airline employee’’ means an employee or 
former employee of a commercial passenger airline 
carrier who was a participant in a defined benefit 
plan maintained by the carrier which— 
(A) is a plan described in section 401(a) of 
the Internal Revenue Code of 1986 which in-
cludes a trust exempt from tax under section 
501(a) of such Code, and 
(B) was terminated or became subject to 
the restrictions contained in paragraphs (2) and 
(3) of section 402(b) of the Pension Protection 
Act of 2006. 
(3) REPORTING REQUIREMENTS.—If a commer-
cial passenger airline carrier pays 1 or more eligible 
rollover amounts, the carrier shall, within 90 days of 
such payment (or, if later, within 90 days of the 
date of the enactment of this Act), report— 
(A) to the Secretary of the Treasury, the 
names of the qualified airline employees to 
whom such amounts were paid, and 
(B) to the Secretary and to such employ-
ees, the years and the amounts of the pay-
ments. 
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Such reports shall be in such form, and contain such 
additional information, as the Secretary may pre-
scribe. 
(e) EFFECTIVE DATE.—This section shall apply to 
transfers made after the date of the enactment of this Act 
with respect to eligible rollover amounts paid before, on, 
or after such date. 
Æ 
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