HR 4061 IHCommentsClose CommentsPermalink

To allow employees of a commercial passenger airline carrier who receive payments in a bankruptcy proceeding to roll over such payments into an individual retirement plan, and for other purposes.CommentsClose CommentsPermalink

November 1, 2007

Mr. LEWIS of Georgia (for himself, Mr. CAMP of Michigan, Mr. CROWLEY, and Mr. LEWIS of Kentucky) introduced the following bill; which was referred to the Committee on Ways and MeansCommentsClose CommentsPermalink

To allow employees of a commercial passenger airline carrier who receive payments in a bankruptcy proceeding to roll over such payments into an individual retirement plan, and for other purposes.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,CommentsClose CommentsPermalink

SECTION 1. ROLLOVER OF AMOUNTS RECEIVED IN AIRLINE CARRIER BANKRUPTCY TO ELIGIBLE RETIREMENT PLANS.

(a) General Rule- If--CommentsClose CommentsPermalink





(1) a qualified airline employee receives any eligible rollover amount, andCommentsClose CommentsPermalink





(2) the qualified airline employee transfers any portion of such amount to an individual retirement plan (as defined in section 7701(a)(37) of the Internal Revenue Code of 1986) within 180 days of receipt of such amount (or, if later, within 180 days of the date of the enactment of this Act),CommentsClose CommentsPermalink





then, except as provided in subsection (b), such amount (to the extent so transferred) shall not be includible in gross income for the taxable year in which paid.CommentsClose CommentsPermalink





(b) Transfers to Roth IRAs-CommentsClose CommentsPermalink





(1) IN GENERAL- If a transfer described in subsection (a) is made to a Roth IRA (as defined in section 408A of the Internal Revenue Code of 1986), then--CommentsClose CommentsPermalink





(A) 50 percent of the portion of any eligible rollover amount so transferred shall be includible in gross income in the first taxable year following the taxable year in which the eligible rollover amount was paid, andCommentsClose CommentsPermalink





(B) 50 percent of such portion shall be includible in gross income in the second taxable year following the taxable year in which the eligible rollover amount was paid.CommentsClose CommentsPermalink





(2) ELECTION TO INCLUDE IN INCOME IN YEAR OF PAYMENT- Notwithstanding paragraph (1), a qualified airline employee may elect to include any portion so transferred in gross income in the taxable year in which the eligible rollover amount was paid.CommentsClose CommentsPermalink





(3) INCOME LIMITATIONS NOT TO APPLY- The limitations described in section 408A(c)(3) of the Internal Revenue Code of 1986 shall not apply to a transfer to which paragraph (1) or (2) applies.CommentsClose CommentsPermalink





(c) Treatment of Eligible Rollover Amounts and Transfers-CommentsClose CommentsPermalink





(1) TREATMENT OF ELIGIBLE ROLLOVER AMOUNTS FOR EMPLOYMENT TAXES- For purposes of chapter 21 of the Internal Revenue Code of 1986 and section 209 of the Social Security Act, an eligible rollover amount shall not fail to be treated as a payment of wages by the commercial passenger airline carrier to the qualified airline employee in the taxable year of payment because such amount is not includible in gross income by reason of subsection (a) or is includible in income in a subsequent taxable year by reason of subsection (b).CommentsClose CommentsPermalink





(2) TREATMENT OF ROLLOVERS- A transfer under subsection (a) shall be treated as a rollover contribution described in section 408(d)(3) of the Internal Revenue Code of 1986, except that in the case of a transfer to which subsection (b) applies, the transfer shall be treated as a qualified rollover contribution described in section 408A(e) of such Code.CommentsClose CommentsPermalink





(d) Definitions and Special Rules- For purposes of this section--CommentsClose CommentsPermalink





(1) ELIGIBLE ROLLOVER AMOUNT-CommentsClose CommentsPermalink





(A) IN GENERAL- The term `eligible rollover amount' means any payment of any money or other property which is payable by a commercial passenger airline carrier to a qualified airline employee--CommentsClose CommentsPermalink





(i) under the approval of an order of a Federal bankruptcy court in a case filed after September 11, 2001, and before January 1, 2007, andCommentsClose CommentsPermalink





(ii) in respect of the qualified airline employee's interest in a bankruptcy claim against the carrier, any note of the carrier (or amount paid in lieu of a note being issued), or any other fixed obligation of the carrier to pay a lump sum amount.CommentsClose CommentsPermalink





(B) EXCEPTION- An eligible rollover amount shall not include any amount payable on the basis of the carrier's future earnings or profits.CommentsClose CommentsPermalink





(2) QUALIFIED AIRLINE EMPLOYEE- The term `qualified airline employee' means an employee or former employee of a commercial passenger airline carrier who was a participant in a defined benefit plan maintained by the carrier which--CommentsClose CommentsPermalink





(A) is a plan described in section 401(a) of the Internal Revenue Code of 1986 which includes a trust exempt from tax under section 501(a) of such Code, andCommentsClose CommentsPermalink





(B) was terminated or became subject to the restrictions contained in paragraphs (2) and (3) of section 402(b) of the Pension Protection Act of 2006.CommentsClose CommentsPermalink





(3) REPORTING REQUIREMENTS- If a commercial passenger airline carrier pays 1 or more eligible rollover amounts, the carrier shall, within 90 days of such payment (or, if later, within 90 days of the date of the enactment of this Act), report--CommentsClose CommentsPermalink





(A) to the Secretary of the Treasury, the names of the qualified airline employees to whom such amounts were paid, andCommentsClose CommentsPermalink





(B) to the Secretary and to such employees, the years and the amounts of the payments.CommentsClose CommentsPermalink





Such reports shall be in such form, and contain such additional information, as the Secretary may prescribe.CommentsClose CommentsPermalink





(e) Effective Date- This section shall apply to transfers made after the date of the enactment of this Act with respect to eligible rollover amounts paid before, on, or after such date.CommentsClose CommentsPermalink