Fairness for Early Withdrawers Act

Bill: 116-hr-7016
Sponsor: full_name: Rep. Mast, Brian J. [R-FL-18]
Introduced: 2020-05-26
Policy area: Taxation
Subjects: Employee benefits and pensions

Financial services and investments

Income tax deferral
Latest action: action_date: 2020-05-26
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2020-05-26
action_desc: Introduced in House
text: <p><b>Fairness for Early Withdrawers Act</b></p> <p>This bill allows tax-preferred pension plan participants to recontribute distributions from such plans made prior to December 1, 2020, without regard to the 60-day rule that requires a rollover of distributions to another plan within 60 days after receipt of such distributions. </p>

tv_txt: I 116th CONGRESS 2d Session H. R. 7016 IN THE HOUSE OF REPRESENTATIVES May 26, 2020 Mr. Mast introduced the following bill; which was referred to the Committee on Ways and Means A BILL To waive the 60-day rule in case of rollover of otherwise required minimum distributions in 2020.

1. Short title This Act may be cited as the Fairness for Early Withdrawers Act . 2. Waiver of 60-day rule in case of rollover of otherwise required minimum distributions in 2020 (a) Qualified trusts Section 402(c)(3) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph: (D) Exception for rollover of otherwise required minimum distributions in 2020 In the case of an eligible rollover distribution described in the second sentence of paragraph (4), subparagraph (A) shall not apply to any transfer of such distribution made before December 1, 2020. . (b) Individual retirement accounts Section 408(d)(3) of such Code is amended by adding at the end the following new subparagraph: (J) Waiver of 60-day rule and once per-year limitation for certain 2020 rollovers In the case of a distribution during 2020 to which, under subparagraph (E), this paragraph would not have applied had the minimum distribution requirements of section 401(a)(9) applied during such years, the 60-day requirement under subparagraph (A) and the limitation under subparagraph (B) shall not apply to such distribution to the extent the amount is paid into an individual retirement account, individual retirement annuity (other than an endowment contract), or eligible retirement plan (as defined in subparagraph (A)) as otherwise required under such subparagraph before December 1, 2020. . (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2019.