,,ii #aafth ,,congress #ast ,session ,s4 #dfi ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,february #ac1 #bjai ,ms4 ,cortez ,masto 7for herself1 ,mrs4 ,murray1 ,mr4 ,wyden1 ,ms4 ,klobuchar1 ,mrs4 ,feinstein1 ,ms4 ,smith1 ,mr4 ,brown1 ,mr4 ,casey1 ,mr4 ,van ,hollen1 ,mr4 ,menendez1 ,ms4 ,duckworth1 ,mr4 ,blumenthal1 ,mr4 ,kaine1 and ,ms4 ,rosen7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to allow penalty-free distributions from retirement accounts in the case of certain ,federal contractors impacted by ,federal ,government shutdowns4 #a4 ,short title ,this ,act may be cited as the ,emergency ,relief for ,federal ,contractors ,act of #bjai4 #b4 ,tax-favored withdrawals from retirement plans 7a7 ,in general ,section #gb7t7 of the ,internal ,revenue ,code of #aihf shall not apply to any ,federal government shutdown distribution4 7b7 ,aggregate dollar limitation 7#a7 ,in general ,for purposes of this section1 the aggregate amount of distributions received by an individual which may be treated as ,federal government shutdown distributions for any taxable year shall not exceed #cj1jjj4 7#b7 ,treatment of plan distributions ,if a distribution to an individual would 7without regard to paragraph 7#a77 be a ,federal government shutdown distribution1 a plan shall not be treated as violating any provision of law merely because the plan treats such distribution as a ,federal government 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 for any taxable year exceeds #cj1jjj4 7#c7 ,controlled group ,for purposes of paragraph 7#b71 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 ,federal government shutdown distribution may1 at any time during the #c-year period beginning on the day after the date on which such distribution was received1 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#af7 of the ,internal ,revenue ,code of #aihf4 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 ,federal government 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 ,federal government 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 ,federal government 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 ,federal government 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 ,federal government shutdown distribution ,the term ,federal government shutdown distribution means any distribution which is-- 7,a7 received by an applicable individual from an eligible retirement plan2 and 7,b7 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 contractor or an employee of a ,federal contractor and is placed on unpaid leave or working without pay due to a ,federal appropriations lapse1 7,b7 who is an employee of a ,state or other ,federal grantee whose compensation is advanced or reimbursed in whole or in part by the ,federal ,government1 and is furloughed1 working without pay1 or working with a decrease in pay due to a ,federal appropriations lapse1 or 7,c7 who is an employee of the ,district of ,columbia ,courts1 the ,public ,defender ,service for the ,district of ,columbia1 or the ,district of ,columbia government and is furloughed or working without pay due to a ,federal appropriations lapse4 7#c7 ,federal appropriations lapse 7,a7 ,in general ,the term ,federal appropriations lapse means any continuous period of at least #b weeks during which there is a lapse in ,federal appropriations 7including a partial lapse74 7,b7 ,period of lapse ,a period of lapse in ,federal appropriations shall not be a ,federal appropriations lapse with respect to an individual for longer than the period during which the individual is furloughed1 on unpaid leave1 or performing work without pay due to such lapse4 7#d7 ,eligible retirement plan ,the term eligible retirement plan has 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 ,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 with respect to any ,federal government shutdown distribution 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 a ,federal government shutdown distribution shall not be treated as an eligible rollover distribution4 7#b7 ,federal government shutdown distributions treated as meeting plan distribution requirements ,for purposes of the ,internal ,revenue ,code of #aihf1 a ,federal government 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