,i  #aaith ,,congress  #ast ,session    
,h4 ,r4 #fibi  ,,in ,,the ,,house ,,of  
,,representatives  ,december #bc1       
#bjbe,ms4 ,norton introduced the        
following bill2 which was referred to   
the ,committee on ,ways and ,means  ,a  
,,bill  ,to amend the ,internal ,revenue
 ,code of #aihf to allow ,federal       
employees who are separated from        
,federal service to make penalty-free   
distributions from ,thrift ,savings     
,plans and include such distributions in
 gross income over #c years4  #a4 ,short
 title ,this ,act may be cited as the   
,thrift ,savings ,plan ,emergency       
,withdrawal ,act of #bjbe4  #b4         
,tax-favored withdrawals from ,thrift   
,savings plan following separation from 
,federal service  7a7 ,in general ,in   
the case of a qualified civil service   
separation distribution-- 7#a7 section  
#gb7t7 of the ,internal ,revenue ,code  
of #aihf shall not apply1 and  7#b7     
unless the taxpayer elects not to have  
this paragraph apply for any taxable    

year1 the amount of any such            
distribution otherwise required to be   
included in gross income for such       
taxable year shall be included in gross 
income ratably over the #c-taxable-year 
period beginning with such taxable year4
  7b7 ,limitation ,the aggregate amount 
which may be treated as a qualified     
civil service separation distribution by
 any individual shall not exceed        
#ajj1jjj4  7c7 ,amount distributed may  
be repaid  7#a7 ,in general ,any        
individual who receives a qualified     
civil service separation distribution   
may1 at any time during the #a-year     
period beginning on the day after the   
date on which such distribution was     
received1 elect to be treated as having 
received the qualified civil service    
separation distribution in an eligible  
rollover distribution 7as defined in    
section #djb7;c77#d7 of such ,code74    
7#b7 ,treatment of elected repayment ,in
 the case of an election under the      
preceding sentence1 the individual may1 

not later than 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 such  
,code1 as the case may be1 and such     
contributions shall be treated as       
amounts transferred to the eligible     
retirement plan in a direct trustee to  
trustee transfer made within #fj days of
 the distribution4  7d7 ,definition and 
special rules  7#a7 ,qualified civil    
service separation distribution ,for    
purposes of this subparagraph1 the term 
qualified civil service separation      
distribution means any distribution to  
an individual from the ,thrift ,savings 
,fund if such distribution is made      

during the period-- 7,a7 beginning on   
the date on which1 after separating from
 the civil service1 the individual      
elects an annuity payment under chapter 
#hc or #hd or title #e1 ,united ,states 
,code1 and  7,b7 ending on the date that
 is #a year after the date on which1    
after the ,office of ,personnel         
,management finalizes the individual's  
annuity claim1 the individual receives  
the first annuity payment 7but not      
including any interim annuity payments7 
under such chapter #hc or #hd1 as the   
case may be4  7#b7 ,treatment of        
contributions to which #c-year averaging
 applies ,for purposes of subsection    
7a77#b71 rules similar to the rules of  
section #djh;,a7d77#c77;,e7 of the      
,internal ,revenue ,code of #aihf shall 
apply4  7#c7 ,exemption of distributions
 from trustee to trustee transfer and   
withholding rules ,for purposes of      
sections #dja7;a77#ca71 #djb7;f71 and   
#cdje of such ,code1 a qualified civil  
service separation distribution shall   

not be treated as an eligible rollover  
distribution4  7e7 ,effective date ,this
 section shall apply to distributions   
made after ,january #bj1 #bjbe4