,i #aafth ,,congress #ast ,session ,h4 ,r4 #gff ,,in ,,the ,,house ,,of ,,representatives ,january #bd1 #bjai ,mr4 ,graves of ,louisiana introduced the following bill2 which was referred to the ,committee on ,ways and ,means1 and in addition to the ,committee on ,oversight and ,reform1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to allow penalty-free distributions from retirement accounts in the case of ,federal employees and certain ,federal contractors impacted by the ,federal ,government shutdown4 #a4 ,tax-favored withdrawals from retirement plans 7a7 ,in general ,section #gb7t7 of the ,internal ,revenue ,code of #aihf shall not apply to any qualified shutdown distribution4 7b7 ,aggregate dollar limitation 7#a7 ,in general ,for purposes of this subsection1 the aggregate amount of distributions received by an individual which may be treated as qualified shutdown distributions for any taxable year1 and with respect to any ,federal appropriations lapse1 shall not exceed an amount equal to the compensation the individual would 7but for such lapse7 have received during such lapse4 7#b7 ,treatment of plan distributions 7,a7 ,in general ,if a distribution to an individual would 7without regard to paragraph 7#a77 be a qualified shutdown distribution1 a plan shall not be treated as violating any provision of law merely because the plan treats such distribution as a qualified shutdown distribution1 unless the aggregate amount of such distributions from all plans maintained by the employer 7and any member of any controlled group which includes the employer7 to such individual exceeds the limitation amount with respect to such individual4 ,plans may require such substantiation and certification of the individual's compensation as may be necessary for purposes of the preceding sentence4 7,b7 ,no ,,tsp conditions on contributions or distributions ,in the case of the ,thrift ,savings ,fund1 no limit on the number of distributions made to an individual1 or on the amount of contributions which may be made by such individual1 shall be imposed solely by reason of a distribution which is a qualified shutdown distribution4 7#c7 ,controlled group ,for purposes of paragraph 7#c71 the term controlled group means any group treated as a single employer under subsection 7b71 7c71 7m71 or 7o7 of section #dad of the ,internal ,revenue ,code of #aihf4 7c7 ,amount distributed may be repaid 7#a7 ,in general ,any individual who receives a qualified shutdown distribution may1 at any time during the #ahj-;day period beginning on the day after the date on which the ,federal appropriations lapse to which the distribution relates ends with respect to the individual1 make #a or more contributions in an aggregate amount not to exceed the amount of such distribution to an eligible retirement plan of which such individual is a beneficiary and to which a rollover contribution of such distribution could be made under section #djb7;c71 #djc7;a77#d71 #djc7;b77#h71 #djh7;d77#c71 or #deg7;e77#af71 of the ,internal ,revenue ,code of #aihf1 as the case may be4 7#b7 ,treatment of repayments of distributions from eligible retirement plans other than ,i,r,as ,for purposes of the ,internal ,revenue ,code of #aihf1 if a contribution is made pursuant to paragraph 7#a7 with respect to a qualified shutdown distribution from an eligible retirement plan other than an individual retirement plan1 then the taxpayer shall1 to the extent of the amount of the contribution1 be treated as having received the qualified shutdown distribution in an eligible rollover distribution 7as defined in section #djb7;c77#d7 of such ,code7 and as having transferred the amount to the eligible retirement plan in a direct trustee to trustee transfer within #fj days of the distribution4 7#c7 ,treatment of repayments of distributions from ,i,r,as ,for purposes of the ,internal ,revenue ,code of #aihf1 if a contribution is made pursuant to paragraph 7#a7 with respect to a qualified shutdown distribution from an individual retirement plan 7as defined by section #ggja7;a77#cg7 of such ,code71 then1 to the extent of the amount of the contribution1 the qualified shutdown distribution shall be treated as a distribution described in section #djh7;d77#c7 of such ,code and as having been transferred to the eligible retirement plan in a direct trustee to trustee transfer within #fj days of the distribution4 7d7 ,definitions ,for purposes of this section-- 7#a7 ,qualified shutdown distribution ,the term qualified shutdown distribution means any distribution by an applicable individual from an eligible retirement plan made during a ,federal appropriations lapse with respect to such individual4 7#b7 ,applicable individual ,the term applicable individual means any individual-- 7,a7 who is a ,federal employee furloughed due to a ,federal appropriations lapse1 7,b7 who is placed on unpaid leave as a ,federal contractor1 or as an employee of a ,federal contractor1 due to a ,federal appropriations lapse1 7,c7 who is an employee of a ,state or other ,federal grantee-- 7i7 whose compensation is advanced or reimbursed in whole or in part by the ,federal ,government1 and 7ii7 who is furloughed due to a ,federal appropriations lapse1 or 7,d7 who is furloughed due to a ,federal appropriations lapse as an employee of the ,district of ,columbia ,courts1 the ,public ,defender ,service for the ,district of ,columbia1 or the ,district of ,columbia government4 ,such term shall include any excepted employee or an employee performing emergency work1 as such terms are defined by the ,office of ,personnel ,management or the appropriate ,district of ,columbia public employer1 as applicable1 during a ,federal appropriations lapse4 7#c7 ,federal appropriation lapse 7,a7 ,in general ,the term ,federal appropriations lapse means any continuous period during which there is a lapse in ,federal appropriations4 7,b7 ,period of lapse ,a period of lapse in ,federal appropriations shall not be a ,federal appropriations lapse with respect to an individual-- 7i7 for longer than the period during which the individual is furloughed 7or on unpaid leave in the case of an individual described in paragraph 7#b77;,b77 due to such lapse1 and 7ii7 unless such period includes the end of a pay period for which compensation was not received by reason of such lapse4 7#d7 ,eligible retirement plan ,the term eligible retirement plan shall have the meaning given such term by section #djb7;c77#h77;,b7 of the ,internal ,revenue ,code of #aihf4 7e7 ,income inclusion spread over #c-,year period 7#a7 ,in general ,in the case of any qualified shutdown distribution1 unless the taxpayer elects not to have this paragraph apply for any taxable year1 any amount required to be included in gross income for such taxable year shall be so included ratably over the #c-taxable-year period beginning with such taxable year4 7#b7 ,special rule ,for purposes of paragraph 7#a71 rules similar to the rules of subparagraph 7,e7 of section #djh;,a7d77#c7 of the ,internal ,revenue ,code of #aihf shall apply4 7f7 ,special rules 7#a7 ,exemption of distributions from trustee to trustee transfer and withholding rules ,for purposes of sections #dja7;a77#ca71 #djb7;f71 and #cdje of the ,internal ,revenue ,code of #aihf1 qualified shutdown distributions shall not be treated as eligible rollover distributions4 7#b7 ,qualified shutdown distributions treated as meeting plan distribution requirements ,for purposes of the ,internal ,revenue ,code of #aihf1 a qualified shutdown distribution shall be treated as meeting the requirements of sections #dja7k77#b77;,b77i71 #djc7;b77#g77;,a77ii71 #djc7;b77#aa71 and #deg7;d77#a77;,a7 of such ,code4