,i  #aaf? ,,congress  #a/ ,session  ,h4 
,r4 #ede  ,,9 ,,! ,,h\se ,,(            
,,repres5tatives  ,janu>y #ae1 #bjai    
,mr4 ,olson 7= himself1 ,mr4 ,bey]1 ,mr4
 ,p]lmutt]1 ,mr4 ,web] ( ,texas1 ,mr4   
,mc,kinley1 ,mr4 ,trone1 ,ms4 ,k5dra ,s4
 ,horn ( ,oklahoma1 ,mr4 ,allr$1 ,mr4   
,br[n ( ,m>yl&1 ,mr4 ,c\rtney1 ,mr4     
,bab91 & ,mr4 ,gaetz7 introduc$ ! foll[+
 bill2 :i* 0 ref]r$ to ! ,committee on  
,ways & ,means1 & 9 addition to !       
,committee on ,ov]sight & ,re=m1 = a    
p]iod to be subsequ5tly det]m9$ by !    
,speak]1 9 ea* case = consid]ation ( su*
 provisions z fall )9 ! jurisdiction ( !
 committee conc]n$  ,a ,,bill  ,to all[ 
p5alty-free di/ributions f retirem5t    
acc\nts 9 ! case ( ,f$]al employees &   
c]ta9 ,f$]al contractors impact$ by !   
,f$]al ,gov]nm5t %utd[n4  #a4 ,%ort     
title ,?is ,act may be cit$ z !         
,f9ancial ,relief = ,f$s ,act ( #bjai4  
#b4 ,tax-favor$ )drawals f retirem5t    
plans  7a7 ,9 g5]al ,section #gb7t7 ( ! 
,int]nal ,rev5ue ,code ( #aihf %all n   

apply to any ,f$]al ,gov]nm5t %utd[n    
di/ribution4  7b7 ,aggregate doll>      
limitation  7#a7 ,9 g5]al ,= purposes ( 
?is subsection1 ! aggregate am\nt (     
di/ributions receiv$ by an individual   
:i* may be treat$ z ,f$]al ,gov]nm5t    
%utd[n di/ributions = any taxable ye>1 &
 ) respect to any ,f$]al appropriations 
lapse1 %all n exce$ ! excess 7if any7   
(-- 7,a7 ! applicable am\nt1 ov]  7,b7 !
 aggregate am\nts treat$ z ,f$]al       
,gov]nm5t %utd[n di/ributions receiv$ by
 su* individual ) respect to su* ,f$]al 
appropriations lapse4  7#b7 ,applicable 
am\nt ,= purposes ( p>agraph 7#a71 !    
applicable am\nt ) respect to an        
individual is an am\nt equal to--  7,a7 
#d1jjj1 multipli$ by  7,b7 ! numb] (    
#ad-;day p]iods beg9n+ dur+ any ,f$]al  
appropriations lapse ) respect to su*   
individual4  7#c7 ,treatm5t ( plan      
di/ributions  7,a7 ,9 g5]al ,if a       
di/ribution to an individual w\ld 7)\t  
reg>d to p>agraph 7#a77 be a ,f$]al     
,gov]nm5t %utd[n di/ribution1 a plan    

%all n be treat$ z violat+ any provision
 ( law m]ely because ! plan treats su*  
di/ribution z a ,f$]al ,gov]nm5t %utd[n 
di/ribution1 unless ! aggregate am\nt ( 
su* di/ributions f all plans ma9ta9$ by 
! employ] 7& any memb] ( any controll$  
gr\p :i* includes ! employ]7 to su*     
individual exce$s ! applicable am\nt )  
respect to su* individual4  7,b7 ,no    
,,tsp conditions on contributions or    
di/ributions ,9 ! case ( ! ,?rift ,sav+s
 ,fund1 no limit on ! numb] (           
di/ributions made to an individual1 or  
on ! am\nt ( contributions :i* may be   
made by su* individual1 %all be impos$  
solely by reason ( a di/ribution :i* is 
a ,f$]al ,gov]nm5t %utd[n di/ribution4  
7#d7 ,controll$ gr\p ,= purposes (      
p>agraph 7#c71 ! t]m controll$ gr\p     
means any gr\p treat$ z a s+le employ]  
"u subsection 7b71 7c71 7m71 or 7o7 (   
section #dad ( ! ,int]nal ,rev5ue ,code 
( #aihf4  7c7 ,am\nt di/ribut$ may be   
repaid  7#a7 ,9 g5]al ,any individual :o
 receives a ,f$]al ,gov]nm5t %utd[n     

di/ribution may1 at any "t dur+ ! #c-ye>
 p]iod beg9n+ on ! day aft] ! date on   
:i* su* di/ribution 0 receiv$1 make #a  
or m contributions 9 an aggregate am\nt 
n to exce$ ! am\nt ( su* di/ribution to 
an eligible retirem5t plan ( :i* su*    
individual is a b5efici>y & to :i* a    
rollov] contribution ( su* di/ribution  
c\ld be made "u section #djb7;c71       
#djc7;a77#d71 #djc7;b77#h71             
#djh7;d77#c71 or #deg7;e77#af71 ( !     
,int]nal ,rev5ue ,code ( #aihf1 z ! case
 may be4  7#b7 ,treatm5t ( repaym5ts (  
di/ributions f eligible retirem5t plans 
o!r ?an ,i,r,as ,= purposes ( ! ,int]nal
 ,rev5ue ,code ( #aihf1 if a            
contribution is made pursuant to        
p>agraph 7#a7 ) respect to a ,f$]al     
,gov]nm5t %utd[n di/ribution f an       
eligible retirem5t plan o!r ?an an      
individual retirem5t plan1 !n ! taxpay] 
%all1 to ! ext5t ( ! am\nt ( !          
contribution1 be treat$ z hav+ receiv$ !
 ,f$]al ,gov]nm5t %utd[n di/ribution 9  
an eligible rollov] di/ribution 7z def9$

 9 section #djb7;c77#d7 ( su* ,code7 & z
 hav+ transf]r$ ! am\nt to ! eligible   
retirem5t plan 9 a direct tru/ee to     
tru/ee transf] )9 #fj days ( !          
di/ribution4  7#c7 ,treatm5t ( repaym5ts
 ( di/ributions f ,i,r,as ,= purposes ( 
! ,int]nal ,rev5ue ,code ( #aihf1 if a  
contribution is made pursuant to        
p>agraph 7#a7 ) respect to a ,f$]al     
,gov]nm5t %utd[n di/ribution f an       
individual retirem5t plan 7z def9$ by   
section #ggja7;a77#cg7 ( su* ,code71 !n1
 to ! ext5t ( ! am\nt ( ! contribution1 
! ,f$]al ,gov]nm5t %utd[n di/ribution   
%all be treat$ z a di/ribution describ$ 
9 section #djh7;d77#c7 ( su* ,code & z  
hav+ be5 transf]r$ to ! eligible        
retirem5t plan 9 a direct tru/ee to     
tru/ee transf] )9 #fj days ( !          
di/ribution4  7d7 ,def9itions ,=        
purposes ( ?is section-- 7#a7 ,f$]al    
,gov]nm5t %utd[n di/ribution ,! t]m     
,f$]al ,gov]nm5t %utd[n di/ribution     
means any di/ribution by an applicable  
individual f an eligible retirem5t plan 

made dur+ a ,f$]al appropriations lapse 
) respect to su* individual4  7#b7      
,applicable individual ,! t]m applicable
 individual means any individual-- 7,a7 
:o is a ,f$]al employee furl\gh$ due to 
a ,f$]al appropriations lapse2  7,b7 :o 
is plac$ on unpaid leave z a ,f$]al     
contractor1 or z an employee ( a ,f$]al 
contractor1 due to a ,f$]al             
appropriations lapse1 & ^: sole s\rce ( 
e>n$ income 7z def9$ 9 section          
#cb7;c77#b7 ( ! ,int]nal ,rev5ue ,code (
 #aihf7 w\ld 7b = su* lapse7 be         
remun]ation z su* a contractor1 or      
employee !re(2  7,c7 :o is an employee (
 a ,/ate or o!r ,f$]al grantee--  7i7 ^:
 comp5sation is advanc$ or reimburs$ 9  
:ole or 9 "p by ! ,f$]al ,gov]nm5t2 &   
7ii7 :o is furl\gh$ due to a ,f$]al     
appropriations lapse2 or  7,d7 :o is    
furl\gh$ due to a ,f$]al appropriations 
lapse z an employee ( ! ,di/rict (      
,columbia ,c\rts1 ! ,public ,def5d]     
,s]vice = ! ,di/rict ( ,columbia1 or !  
,di/rict ( ,columbia gov]nm5t4  ,su* t]m

 %all include any except$ employee or an
 employee p]=m+ em]g5cy "w1 z su* t]ms  
are def9$ by ! ,(fice ( ,p]sonnel       
,managem5t or ! appropriate ,di/rict (  
,columbia public employ]1 z applicable1 
dur+ a ,f$]al appropriations lapse4     
7#c7 ,f$]al appropriation lapse  7,a7 ,9
 g5]al ,! t]m ,f$]al appropriations     
lapse means any cont9u\s p]iod dur+ :i* 
!re is a lapse 9 ,f$]al appropriations4 
7,b7 ,p]iod ( lapse ,a p]iod ( lapse 9  
,f$]al appropriations %all n be a ,f$]al
 appropriations lapse ) respect to an   
individual = long] ?an ! p]iod dur+ :i* 
! individual is furl\gh$ 7or on unpaid  
leave 9 ! case ( an individual describ$ 
9 p>agraph 7#b77;,b77 due to su* lapse4 
7#d7 ,eligible retirem5t plan ,! t]m    
eligible retirem5t plan %all h ! mean+  
giv5 su* t]m by section                 
#djb7;c77#h77;,b7 ( ! ,int]nal ,rev5ue  
,code ( #aihf4  7e7 ,income inclusion   
spread ov] #c-,ye> p]iod  7#a7 ,9 g5]al 
,9 ! case ( any ,f$]al ,gov]nm5t %utd[n 
di/ribution1 unless ! taxpay] elects n  

to h ?is p>agraph apply = any taxable   
ye>1 any am\nt requir$ to be includ$ 9  
gross income = su* taxable ye> %all be s
 includ$ ratably ov] ! #c-taxable-ye>   
p]iod beg9n+ ) su* taxable ye>4  7#b7   
,special rule ,= purposes ( p>agraph    
7#a71 rules simil> to ! rules (         
subp>agraph 7,e7 ( section              
#djh;,a7d77#c7 ( ! ,int]nal ,rev5ue     
,code ( #aihf %all apply4  7f7 ,special 
rules  7#a7 ,exemption ( di/ributions f 
tru/ee to tru/ee transf] & )hold+ rules 
,= purposes ( sections #dja7;a77#ca71   
#djb7;f71 & #cdje ( ! ,int]nal ,rev5ue  
,code ( #aihf1 ,f$]al ,gov]nm5t %utd[n  
di/ributions %all n be treat$ z eligible
 rollov] di/ributions4  7#b7 ,f$]al     
,gov]nm5t %utd[n di/ributions treat$ z  
meet+ plan di/ribution requirem5ts ,=   
purposes ! ,int]nal ,rev5ue ,code (     
#aihf1 a ,f$]al ,gov]nm5t %utd[n        
di/ribution %all be treat$ z meet+ !    
requirem5ts ( sections                  
#dja7k77#b77;,b77i71                    
#djc7;b77#g77;,a77ii71 #djc7;b77#aa71 & 

#deg7;d77#a77;,a7 ( su* ,code4