SEC. 2. MORATORIUM ON PENALTY FOR EARLY DISTRIBU-
TIONS 
FROM 
QUALIFIED 
RETIREMENT 
PLANS. 
(a) IN GENERAL.—Paragraph (2) of section 72(t) of 
the Internal Revenue Code of 1986 is amended by adding 
at the end the following: 
‘‘(I) RECOVERY
DISTRIBUTIONS.—In the 
case of distributions on or after the date of the 
enactment of this subparagraph and before the 
end of the 1-year period beginning on such 
date, any qualified recovery distribution.’’. 
(b) QUALIFIED
RECOVERY
DISTRIBUTION.—Sub-
section (t) of section 72 of such Code is amended by add-
ing at the end the following new paragraph: 
‘‘(11) QUALIFIED RECOVERY DISTRIBUTION.— 
For purposes of paragraph (2)(I)— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
recovery distribution’ means any distribution 
which is— 
‘‘(i) a qualified mortgage distribution, 
or 
‘‘(ii) a qualified unemployment dis-
tribution. 
‘‘(B) QUALIFIED MORTGAGE DISTRIBUTION 
DISTRIBUTIONS.—For purposes of subpara-
graph (A), the term ‘qualified mortgage dis-
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tribution’ means a distribution to the extent 
that the aggregate distributions for the taxable 
year do not exceed the aggregate payments of 
the taxpayer for the taxable year for principal, 
interest, escrow for real estate taxes and prop-
erty insurance, and mortgage insurance with re-
spect to any residence that is a qualified resi-
dence (as defined in section 163(h)(4)(A)) of 
the taxpayer for the taxable year. 
‘‘(C) QUALIFIED
UNEMPLOYMENT
DIS-
TRIBUTION.—For purposes of subparagraph 
(A)— 
‘‘(i) IN GENERAL.—The term ‘quali-
fied unemployment distribution’ means a 
distribution to an individual after separa-
tion from employment if— 
‘‘(I) such individual has received 
unemployment compensation for 12 
consecutive weeks under any Federal 
or State unemployment compensation 
law by reason of such separation, and 
‘‘(II) such distribution is made 
during any taxable year during which 
such unemployment compensation is 
paid or the succeeding taxable year. 
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‘‘(ii) DISTRIBUTIONS
AFTER
REEM-
PLOYMENT AND SELF-EMPLOYED INDIVID-
UALS.—Rules similar to the rules of 
clauses (ii) and (iii) of paragraph (2)(D) 
shall apply. 
‘‘(D) COORDINATION.—Distributions shall 
not be taken into account under subparagraph 
(A) if such distributions are described in sub-
paragraph (A), (C), (D), (E), (F), or (G) of 
paragraph (2) or to the extent paragraph (1) 
does not apply to such distributions by reason 
of paragraph (2)(B).’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to distributions on or after the date 
of the enactment of this Act. 
SEC. 3. INCREASE IN AGE FOR REQUIRED DISTRIBUTIONS. 
(a) IN GENERAL.—Subparagraphs (B)(iv)(I) and (C) 
of section 401(a)(9) of the Internal Revenue Code of 1986 
are amended by striking ‘‘701⁄2’’ each place it occurs and 
inserting ‘‘75’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 219(d)(1) of such Code is amended 
by striking ‘‘701⁄2’’ in the heading and the text and 
inserting ‘‘75’’. 
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(2) Section 408(b)(4) of such Code is amended 
by striking ‘‘701⁄2’’ and inserting ‘‘75’’. 
(3) 408(d)(8)(B)(ii) of such Code is amended 
by striking ‘‘701⁄2’’ and inserting ‘‘75’’. 
(4) 408A(c)(4) of such Code is amended by 
striking ‘‘701⁄2’’ in the heading and the text and in-
serting ‘‘75’’. 
(5) Section 457(d)(1)(A)(i) of such Code is 
amended by striking ‘‘701⁄2’’ and inserting ‘‘75’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this subsection shall apply to years beginning after the 
date of the enactment of this Act. 
Æ 
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