,,ii  #aaf? ,,congress  #a/ ,session    
,s4 #dhf  ,,9 ,,! ,,s5ate ,,( ,,!       
,,unit$ ,,/ates  ,febru>y #ad1 #bjai    
,mr4 ,cassidy 7= himself & ,mr4 ,w>n]7  
introduc$ ! foll[+ bill2 :i* 0 read     
twice & ref]r$ to ! ,committee on       
,f9ance  ,a ,,bill  ,to waive ! p5alty =
 )drawals f retirem5t plans = c]ta9     
,f$]al employees & contractors affect$  
by a lapse 9 appropriations1 & = o!r    
purposes4  #a4 ,special rules = use (   
retirem5t funds by ,f$]al employees &   
contractors affect$ by a lapse 9        
appropriations  7a7 ,waiv] ( #aj p]c5t  
tax on e>ly di/ributions ,section #gb7t7
 ( ! ,int]nal ,rev5ue ,code ( #aihf %all
 n apply to any qualifi$ furl\gh        
di/ribution4  7b7 ,income inclusion     
spread ov] #b-,ye> p]iod ,9 ! case ( any
 qualifi$ furl\gh di/ribution1 unless ! 
taxpay] elects n to h ?is subsection    
apply = any taxable ye>1 any am\nt      
requir$ to be includ$ 9 gross income =  
su* taxable ye> %all be s includ$       
ratably ov] ! #b-taxable-ye> p]iod      

beg9n+ ) su* taxable ye>4  7c7 ,am\nt   
di/ribut$ may be repaid  7#a7 ,9 g5]al  
,any individual :o receives a qualifi$  
furl\gh di/ribution may1 at any "t dur+ 
! #a-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#af7 ( !      
,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 qualifi$   
furl\gh 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$ ! qualifi$ furl\gh
 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 qualifi$   
furl\gh di/ribution f an individual     
retirem5t plan 7z def9$ by section      
#ggja7;a77#cg7 ( su* ,code71 !n1 to !   
ext5t ( ! am\nt ( ! contribution1 !     
qualifi$ furl\gh 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 ,special rules  7#a7  
,qualifi$ furl\gh di/ributions treat$ z 
meet+ plan di/ribution requirem5ts ,=   

purposes ( ! ,int]nal ,rev5ue ,code (   
#aihf1 a qualifi$ furl\gh di/ribution   
%all be treat$ z meet+ ! requirem5ts (  
sections #dja7k77#b77;,b77i71           
#djc7;b77#g77;,a77ii71 #djc7;b77#aa71 & 
#deg7;d77#a77;,a7 ( su* ,code1 :i*ev] is
 applicable4  7#b7 ,reliance on         
repres5tation ,an eligible retirem5t    
plan may rely on an individual's writt5 
repres5tation t ! individual is an      
applicable individual :o has n receiv$  
previ\s qualifi$ furl\gh di/ributions 9 
excess ( ! doll> limitation "u          
subsection 7e77#a77;,b74  7e7           
,def9itions ,= purposes ( ?is section-- 
7#a7 ,qualifi$ furl\gh di/ribution  7,a7
 ,9 g5]al ,except z provid$ 9           
subp>agraph 7,b71 ! t]m qualifi$ furl\gh
 di/ribution means any di/ribution f an 
eligible retirem5t plan to an applicable
 individual if ! di/ribution is made--  
7i7 aft] ,janu>y #a1 #bjai1 &  7ii7 dur+
 a cov]$ lapse 9 appropriations or ! #ij
 days imm$iately foll[+ a cov]$ lapse 9 
appropriations4  7,b7 ,doll> limitation 

7i7 ,9 g5]al ,! aggregate am\nt (       
di/ributions receiv$ by an individual   
:i* may be treat$ z qualifi$ furl\gh    
di/ributions = any taxable ye> %all n   
exce$ ! excess 7if any7 (--  7,i7       
#cj1jjj1 ov]  7,,ii7 ! aggregate am\nts 
treat$ z qualifi$ furl\gh di/ributions )
 respect to su* individual = all prior  
taxable ye>s4  7ii7 ,aggregation        
,di/ributions receiv$ f all eligible    
retirem5t plans %all be aggregat$ =     
purposes ( ! doll> limitation "u clause 
7i74  7#b7 ,eligible retirem5t plan ,!  
t]m eligible retirem5t plan has ! mean+ 
giv5 su* t]m by section                 
#djb7;c77#h77;,b7 ( ! ,int]nal ,rev5ue  
,code ( #aihf4  7#c7 ,cov]$ lapse 9     
appropriations ,! t]m cov]$ lapse 9     
appropriations means any lapse 9        
appropriations t beg9s on or aft]       
,decemb] #bb1 #bjah4  7#d7 ,applicable  
individual ,! t]m applicable individual 
means any individual-- 7,a7 :o is a     
,f$]al employee furl\gh$ due to a cov]$ 
lapse 9 appropriations1  7,b7 :o is     

plac$ on unpaid leave z a ,f$]al        
contractor1 or z an employee ( a ,f$]al 
contractor1 due to a cov]$ lapse 9      
appropriations1 & ^: sole s\rce ( e>n$  
income 7z def9$ 9 section #cb7;c77#b7 ( 
! ,int]nal ,rev5ue ,code ( #aihf7 is 7b 
= su* lapse7 remun]ation z su* a        
contractor or employee !re(1  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$]al 
,gov]nm5t1 &  7ii7 :o is furl\gh$ due to
 a cov]$ lapse 9 appropriations1 or     
7,d7 :o is an employee ( ! ,di/rict (   
,columbia ,c\rts1 ! ,public ,def5d]     
,s]vice = ! ,di/rict ( ,columbia1 or !  
,di/rict ( ,columbia gov]nm5t & is      
furl\gh$ due to a cov]$ lapse 9         
appropriations4  ,su* t]m %all include  
any except$ employee & any employee     
p]=m+ em]g5cy "w1 z su* t]ms are def9$  
by ! ,(fice ( ,p]sonnel ,managem5t1 dur+
 a cov]$ lapse 9 appropriations4