I 
109TH CONGRESS 
1ST SESSION 
H. R. 621
To amend the Internal Revenue Code of 1986 to allow penalty-free with-
drawals from retirement plans during the period that a military reservist 
or national guardsman is called to active duty for an extended period, 
and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 8, 2005
Mr. BEAUPREZ (for himself and Mr. BARRETT of South Carolina) 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 allow pen-
alty-free withdrawals from retirement plans during the 
period that a military reservist or national guardsman 
is called to active duty for an extended period, 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. SHORT TITLE. 
This Act may be cited as the ‘‘Guardsmen and Re-
servists Financial Relief Act of 2005’’.
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, 2007. 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)(7)(A)(ii) of such Code is 
amended by inserting ‘‘unless such amount is a dis-
tribution to which section 72(t)(2)(G) applies or’’ 
after ‘‘distributee’’. 
(3) 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; WAIVER OF LIMITATIONS.—
(1) EFFECTIVE DATE.—The amendment made 
by this section shall apply to distributions after Sep-
tember 11, 2001. 
(2) WAIVER
OF
LIMITATIONS.—If refund or 
credit of any overpayment of tax resulting from the 
amendments made by this section is prevented at 
any time before the close of the 1-year period begin-
ning on the date of the enactment of this Act by the 
operation of any law or rule of law (including res ju-
dicata), such refund or credit may nevertheless be 
made or allowed if claim therefor is filed before the 
close of such period.
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