,i  #aai? ,,congress  #a/ ,session  ,h4 
,r4 #fibi  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,decemb] #bc1         
#bjbe,ms4 ,norton introduc$ ! foll[+    
bill2 :i* 0 ref]r$ to ! ,committee on   
,ways & ,means  ,a ,,bill  ,to am5d !   
,int]nal ,rev5ue ,code ( #aihf to all[  
,f$]al employees :o are sep>at$ f ,f$]al
 s]vice to make p5alty-free di/ributions
 f ,?rift ,sav+s ,plans & include su*   
di/ributions 9 gross income ov] #c ye>s4
  #a4 ,%ort title ,?is ,act may be cit$ 
z ! ,?rift ,sav+s ,plan ,em]g5cy        
,)drawal ,act ( #bjbe4  #b4 ,tax-favor$ 
)drawals f ,?rift ,sav+s plan foll[+    
sep>ation f ,f$]al s]vice  7a7 ,9 g5]al 
,9 ! case ( a qualifi$ civil s]vice     
sep>ation di/ribution-- 7#a7 section    
#gb7t7 ( ! ,int]nal ,rev5ue ,code (     
#aihf %all n apply1 &  7#b7 unless !    
taxpay] elects n to h ?is p>agraph apply
 = any taxable ye>1 ! am\nt ( any su*   
di/ribution o!rwise requir$ to be       
includ$ 9 gross income = su* taxable ye>
 %all be includ$ 9 gross income ratably 

ov] ! #c-taxable-ye> p]iod beg9n+ ) su* 
taxable ye>4  7b7 ,limitation ,!        
aggregate am\nt :i* may be treat$ z a   
qualifi$ civil s]vice sep>ation         
di/ribution by any individual %all n    
exce$ #ajj1jjj4  7c7 ,am\nt di/ribut$   
may be repaid  7#a7 ,9 g5]al ,any       
individual :o receives a qualifi$ civil 
s]vice sep>ation di/ribution may1 at any
 "t dur+ ! #a-ye> p]iod beg9n+ on ! day 
aft] ! date on :i* su* di/ribution 0    
receiv$1 elect to be treat$ z hav+      
receiv$ ! qualifi$ civil s]vice         
sep>ation di/ribution 9 an eligible     
rollov] di/ribution 7z def9$ 9 section  
#djb7;c77#d7 ( su* ,code74  7#b7        
,treatm5t ( elect$ repaym5t ,9 ! case ( 
an election "u ! prec$+ s5t5ce1 !       
individual may1 n lat] ?an ! #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#af7 ( su*    
,code1 z ! case may be1 & su*           
contributions %all be treat$ z am\nts   
transf]r$ to ! eligible retirem5t plan 9
 a direct tru/ee to tru/ee transf] made 
)9 #fj days ( ! di/ribution4  7d7       
,def9ition & special rules  7#a7        
,qualifi$ civil s]vice sep>ation        
di/ribution ,= purposes ( ?is           
subp>agraph1 ! t]m qualifi$ civil s]vice
 sep>ation di/ribution means any        
di/ribution to an individual f ! ,?rift 
,sav+s ,fund if su* di/ribution is made 
dur+ ! p]iod-- 7,a7 beg9n+ on ! date on 
:i*1 aft] sep>at+ f ! civil s]vice1 !   
individual elects an annuity paym5t "u  
*apt] #hc or #hd or title #e1 ,unit$    
,/ates ,code1 &  7,b7 end+ on ! date t  
is #a ye> aft] ! date on :i*1 aft] !    
,(fice ( ,p]sonnel ,managem5t f9alizes !
 individual's annuity claim1 !          
individual receives ! fir/ annuity      

paym5t 7b n includ+ any int]im annuity  
paym5ts7 "u su* *apt] #hc or #hd1 z !   
case may be4  7#b7 ,treatm5t (          
contributions to :i* #c-ye> av]ag+      
applies ,= purposes ( subsection        
7a77#b71 rules simil> to ! rules (      
section #djh;,a7d77#c77;,e7 ( ! ,int]nal
 ,rev5ue ,code ( #aihf %all apply4  7#c7
 ,exemption ( di/ributions f tru/ee to  
tru/ee transf] & )hold+ rules ,=        
purposes ( sections #dja7;a77#ca71      
#djb7;f71 & #cdje ( su* ,code1 a        
qualifi$ civil s]vice sep>ation         
di/ribution %all n be treat$ z an       
eligible rollov] di/ribution4  7e7      
,effective date ,?is section %all apply 
to di/ributions made aft] ,janu>y #bj1  
#bjbe4