I
107TH CONGRESS
1ST SESSION
H. R. 3365
To amend the Internal Revenue Code of 1986 to allow withdrawals from
individual retirement plans without penalty for certain individuals signifi-
cantly affected by the September 11, 2001, terrorist attacks.
IN THE HOUSE OF REPRESENTATIVES
NOVEMBER 28, 2001
Mrs. MINK of Hawaii 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 with-
drawals from individual retirement plans without penalty
for certain individuals significantly affected by the Sep-
tember 11, 2001, terrorist attacks.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. PENALTY-FREE WITHDRAWALS FROM INDI-
VIDUAL RETIREMENT PLANS FOR CERTAIN
INDIVIDUALS SIGNIFICANTLY AFFECTED BY
SEPTEMBER 11, 2001, TERRORIST ATTACKS.
(a) IN GENERAL.—Paragraph (2) of section 72(t)
(relating to exceptions to 10-percent additional tax on
early distributions from qualified retirement plans) is
amended by adding at the end the following new subpara-
graph:
‘‘(G) DISTRIBUTIONS
FROM
INDIVIDUAL
RETIREMENT
PLANS
TO
BENEFICIARIES
AD-
VERSELY
AFFECTED
BY
SEPTEMBER
11, 2001
TERRORIST
ATTACKS.—Distributions 
before
September 12, 2002, from an individual retire-
ment plan to an individual significantly affected
by the September 11, 2001, terrorist attacks
against the United States. Distributions shall
not be taken into account under the preceding
sentence if such distributions are described in
subparagraph (A), (C), (D), (E), or (F) or to
the extent paragraph (1) does not apply to such
distributions by reason of subparagraph (B).’’.
(b) DEFINITION.—Section 72(t) of such Code is
amended by redesignating paragraph (9) as paragraph
(10) and by adding after paragraph (8) the following new
paragraph:
‘‘(9) INDIVIDUALS
SIGNIFICANTLY
AFFECTED
BY SEPTEMBER 11, 2001, TERRORIST ATTACKS.—For
purposes of paragraph (2)(G)—
‘‘(A) IN GENERAL.—An individual is sig-
nificantly affected by the September 11, 2001,
terrorist attacks against the United States if
the individual—
‘‘(i) has received unemployment com-
pensation for 12 consecutive weeks under
any Federal or State unemployment com-
pensation law and if distributions from the
retirement plan are made during any tax-
able year during which such unemployment
compensation is paid or the succeeding
taxable year,
‘‘(ii) is a 10-percent owner of a small
business concern (within the meaning of
the Small Business Act) that has suffered
a significant negative economic impact
since September 11, 2001, or
‘‘(iii) had a spouse or dependent (as
defined in section 152) die as a result of
such attacks.
‘‘(B) SIGNIFICANT
NEGATIVE
ECONOMIC
IMPACT.—For 
purposes 
of 
subparagraph
(A)(ii), a small business concern has suffered a
significant negative economic impact if such
concern is not able—
‘‘(i) to meet its obligations on an on-
going basis,
‘‘(ii) to pay its ordinary and necessary
operating expenses, or
‘‘(iii) to market, produce, or provide a
product or service ordinarily marketed,
produced, or provided by the small busi-
ness concern.
‘‘(C) 10-PERCENT OWNER.—For purposes
of subparagraph (A)(ii), the term ‘10-percent
owner’ means, with respect to a small business
concern, an individual who owns 10 percent or
more—
‘‘(i) of the total combined voting
power of such concern,
‘‘(ii) (by value) of the assets in such
concern,
‘‘(iii) of the profits interest of a part-
nership which is such concern, or
‘‘(iv) of the beneficial interest of a
trust or unincorporated enterprise which is
such concern.
‘‘(D) 
EXCEPTION.—Subparagraph 
(A)
shall not apply to with respect to an individual
whom the Secretary determines was a perpe-
trator of any such terrorist attack.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to distributions made on or after
the date of the enactment of this Act.
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