I
103D CONGRESS
1ST SESSION
H. R. 1094
To amend the Internal Revenue Code of 1986 to provide that distributions
to involuntarily unemployed individuals from individual retirement ac-
counts will not be subject to the additional tax on early distributions.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 24, 1993
Mr. DIXON (for himself, Mr. RANGEL, Mrs. MALONEY, Mr. HILLIARD, Mr.
DELLUMS, Mr. FRANK of Massachusetts, Ms. WOOLSEY, Mr. JEFFER-
SON, Mr. MINGE, Mr. KOPETSKI, Mr. FROST, Mr. HOBSON, Mr.
BARRETT of Wisconsin, and Mr. GUNDERSON) 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 provide
that distributions to involuntarily unemployed individuals
from individual retirement accounts will not be subject
to the additional tax on early distributions.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
That (a) paragraph (2) of section 72(t) of the Internal
Revenue Code of 1986 (relating to exceptions) is amended
by adding at the end thereof the following new subpara-
graph:
‘‘(D) DISTRIBUTIONS TO INVOLUNTARILY
UNEMPLOYED
INDIVIDUALS.—Any distribution
from an individual retirement plan to an indi-
vidual during any period—
‘‘(i) for which such individual is re-
ceiving unemployment compensation (as
defined in section 85(b)), or
‘‘(ii) for which such individual would
have been entitled to receive unemployment
compensation (as so defined) but for—
‘‘(I) the termination of the period
during which such compensation was
payable, or
‘‘(II) an exhaustion of such indi-
vidual’s rights to such compensation.’’
(b) Subsection (t) of section 72 of such Code is
amended by adding at the end thereof the following new
paragraph:
‘‘(6) RECONTRIBUTION OF CERTAIN DISTRIBU-
TIONS TO INVOLUNTARILY UNEMPLOYED.—
‘‘(A) IN
GENERAL.—If an individual re-
ceived a distribution described in paragraph
(2)(D), such individual may recontribute such
distribution to an individual retirement plan in
the manner provided in this paragraph.
‘‘(B) 
METHOD
OF
MAKING
RECONTRIBUTION.—Any recontribution of a
distribution described in paragraph (2)(D) re-
ceived by any individual—
‘‘(i) may be made only during the 1-
year period following the first week of dis-
qualifying employment after the receipt of
such distribution,
‘‘(ii) shall not exceed the portion of
such distribution which was included in
gross 
income 
reduced 
by 
any 
prior
recontribution under this subsection with
respect to such distribution, and
‘‘(iii) shall be made by making a pay-
ment in cash for the benefit of such indi-
vidual to an individual retirement plan.
An 
individual 
making 
a 
contribution 
as
recontribution under this subsection shall des-
ignate (in the manner prescribed by the Sec-
retary) such contribution as a recontribution
under this paragraph and shall specify the dis-
tribution 
in 
respect 
of 
which 
such
recontribution is being made.
‘‘(C) TREATMENT OF RECONTRIBUTION.—
‘‘(i) DEDUCTION
ALLOWED.—There
shall be allowed as a deduction to an indi-
vidual making a recontribution under this
paragraph an amount equal to the amount
so recontributed. Such deduction shall be
allowable in computing adjusted gross in-
come and shall be allowed for the taxable
year in which such recontribution is made.
‘‘(ii) TREATED
AS
ROLLOVER
CON-
TRIBUTION.—For purposes of this title,
any recontribution under this subsection
shall be treated as a rollover contribution
described in section 403(b)(8).
‘‘(D) WEEK OF DISQUALIFYING EMPLOY-
MENT.—For purposes of subparagraph (A), the
term ‘week of disqualifying employment’ means
any week during which the individual has em-
ployment which disqualifies the individual from
receiving unemployment compensation or would
so disqualify the individual but for a prior ex-
haustion of the individual’s rights to unemploy-
ment compensation or termination of the period
during which such compensation was payable.’’
(c) The amendments made by this section shall apply
to distributions made after December 31, 1992.