HR 5641 IHCommentsClose CommentsPermalink

To amend the Internal Revenue Code of 1986 to permit hardship loans from certain individual retirement plans.CommentsClose CommentsPermalink

March 14, 2008

Mr. MCCOTTER (for himself and Mr. PAUL) introduced the following bill; which was referred to the Committee on Ways and MeansCommentsClose CommentsPermalink

To amend the Internal Revenue Code of 1986 to permit hardship loans from certain individual retirement plans.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. SHORT TITLE.

This Act may be cited as the `IRA Assistance Act of 2008'.CommentsClose CommentsPermalink

SEC. 2. HARDSHIP LOANS FROM CERTAIN INDIVIDUAL RETIREMENT PLANS.

(a) In General- Paragraph (2) of section 72(t) is amended by adding at the end the following new subparagraph:CommentsClose CommentsPermalink





`(H) HARDSHIP LOANS FROM CERTAIN INDIVIDUAL RETIREMENT PLANS-CommentsClose CommentsPermalink





`(i) IN GENERAL- Any qualified hardship loan.CommentsClose CommentsPermalink





`(ii) QUALIFIED HARDSHIP LOAN- For purposes of this subparagraph, the term `qualified hardship loan' means any distribution to an individual from a qualified individual retirement plan of such individual upon hardship of such individual (within the meaning of section 401(k)(2)(B)(i)(IV)) if one or more contributions to a qualified individual retirement plan of such individual in an aggregate amount equal to such distribution are made during the 5-year period beginning on the date of such distribution.CommentsClose CommentsPermalink





`(iii) QUALIFIED INDIVIDUAL RETIREMENT PLAN- For purposes of this subparagraph, the term `qualified individual retirement plan' means an individual retirement plan other than a Roth IRA.CommentsClose CommentsPermalink





`(iv) LIMITATION ON AMOUNT OF LOAN- Such term shall not include any loan unless the amount of such loan (when added to the outstanding balance of all other hardship loans from Qualified individual retirement plans of such individual) does not exceed $50,000.CommentsClose CommentsPermalink





`(v) TREATMENT OF RECONTRIBUTIONS- In the case of any contribution to a qualified individual retirement plan taken into account under clause (ii)--CommentsClose CommentsPermalink





`(I) the dollar limitations otherwise applicable to contributions to qualified individual retirement plans shall not apply to such contribution, andCommentsClose CommentsPermalink





`(II) no deduction shall be allowed for such contribution.CommentsClose CommentsPermalink





`(vi) FAILURE TO REPAY- In the case of a failure to make the aggregate amount of contributions described in clause (ii) during the 5-year period described therein, the penalty determined under paragraph (1) shall be imposed for the taxable year in which such 5-year period ends in lieu of the taxable year in which the distribution was made.'.CommentsClose CommentsPermalink





(b) Effective Date- The amendment made by this section shall apply to distributions made after the 6-month period beginning on the date of the enactment of this Act.CommentsClose CommentsPermalink