,i  #aai? ,,congress  #b;d ,session  ,h4
 ,r4 #gahe  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,janu>y #ba1 #bjbf,mr4
 ,mc,guire introduc$ ! foll[+ bill2 :i* 
0 ref]r$ to ! ,committee on ,ways &     
,means  ,a ,,bill  ,to am5d ! ,int]nal  
,rev5ue ,code ( #aihf to exclude f gross
 income c]ta9 retirem5t plan            
di/ributions us$ = a d[n paym5t or clos+
 co/s = a pr9cipal resid5ce1 & = o!r    
purposes4  #a4 ,%ort title ,?is ,act may
 be cit$ z ! ,home ,sav+s ,act4  #b4    
,exclusion f gross income ( retirem5t   
plan di/ributions us$ = a d[n paym5t or 
clos+ co/s = a pr9cipal resid5ce  7a7 ,9
 g5]al  7#a7 ,def9$ contribution plans  
,section #djb ( ! ,int]nal ,rev5ue ,code
 ( #aihf is am5d$ by add+ at ! end !    
foll[+ new subsection3  7m7             
,di/ributions = a d[n paym5t or clos+   
co/s = a pr9cipal resid5ce  7#a7 ,9     
g5]al ,! gross income ( an employee =   
any taxable ye> %all n include any      
di/ribution f a def9$ contribution plan 
( su* employee to ! ext5t t su*         

di/ribution is us$ = a d[n paym5t or    
clos+ co/s associat$ ) acquir+ a        
pr9cipal resid5ce (-- 7,a7 ! employee1  
or  7,b7 an eligible relative ( !       
employee4  7#b7 ,def9itions ,= purposes 
( ?is subsection-- 7,a7 ,eligible       
relative ,! t]m eligible relative means1
 ) respect to any employee-- 7i7 ! sp\se
 ( ! employee1 or  7ii7 any *ild1       
gr&*ild1 or ance/or (-- 7,i7 ! employee1
 or  7,,ii7 ! sp\se ( ! employee4  7,b7 
,def9$ contribution plan ,! t]m def9$   
contribution plan has ! mean+ giv5 ! t]m
 9 section #dad7;i74  7,c7 ,pr9cipal    
resid5ce ,! t]m pr9cipal resid5ce has ! 
same mean+ z :5 us$ 9 section #aba4     
7#c7 ,application ( section #gb ,rules  
simil> to ! rules ( section             
#djh7;d77#aj77;,c7 %all apply = purposes
 ( ?is subsection1 by tak+ into acc\nt  
all am\nts 9 ! def9$ contribution plan  
to :i* ! employee has non=feitable "r 9 
lieu ( all am\nts 9 all individual      
retirem5t plans ( ! individual4  7#d7   
,gift tax treatm5t ,s mu* ( any transf] 

( a di/ribution describ$ 9 p>agraph 7#a7
 by ! employee to an eligible relative z
 is us$ by su* eligible relative = a d[n
 paym5t or clos+ co/s associat$ )       
acquir+ a pr9cipal resid5ce ( su*       
eligible relative %all n be treat$ z a  
gift = purposes ( section #bejc7;a74    
7#e7 ,t]m9ation date ,p>agraph 7#a7 %all
 n apply to di/ributions made 9 taxable 
ye>s beg9n+ aft] ,decemb] #ca1 #bjcj4  4
  7#b7 ,c]ta9 annuity plans ,section    
#djc ( su* ,code is am5d$ by add+ at !  
end ! foll[+ new subsection3  7d7       
,di/ributions = a d[n paym5t or clos+   
co/s = a pr9cipal resid5ce  7#a7 ,9     
g5]al ,! rules ( section #djb7m7 %all   
apply to di/ributions "u an annuity plan
 describ$ 9 subsection 7a7 or an annuity
 contract describ$ 9 subsection 7b74    
7#b7 ,t]m9ation date ,p>agraph 7#a7 %all
 n apply to di/ributions made 9 taxable 
ye>s beg9n+ aft] ,decemb] #ca1 #bjcj4  4
  7#c7 ,individual retirem5t plans      
,section #djh7;d7 ( su* ,code is am5d$  
by add+ at ! end ! foll[+ new p>agraph3 

7#aj7 ,di/ributions = a d[n paym5t or   
clos+ co/s = a pr9cipal resid5ce  7,a7  
,9 g5]al ,! gross income ( an individual
 = any taxable ye> %all n include any   
di/ribution f an individual retirem5t   
plan ( su* individual to ! ext5t t su*  
di/ribution is us$ = a d[n paym5t or    
clos+ co/s associat$ ) acquir+ a        
pr9cipal resid5ce (-- 7i7 ! individual1 
or  7ii7 an eligible relative ( !       
individual4  7,b7 ,def9itions ,=        
purposes ( ?is p>agraph-- 7i7 ,eligible 
relative ,! t]m eligible relative means1
 ) respect to any individual-- 7,i7 !   
sp\se ( ! individual1 or  7,,ii7 any    
*ild1 gr&*ild1 or ance/or (-- 7aa7 !    
individual1 or  7bb7 ! sp\se ( !        
individual4  7ii7 ,individual retirem5t 
plan ,! t]m individual retirem5t plan   
has ! mean+ giv5 ! t]m 9 section #ggja4 
7iii7 ,pr9cipal resid5ce ,! t]m pr9cipal
 resid5ce has ! same mean+ z :5 us$ 9   
section #aba4  7,c7 ,application (      
section #gb ,not)/&+ section #gb1 9     
det]m9+ ! ext5t to :i* a di/ribution is 

us$ = a d[n paym5t or clos+ co/s        
pursuant to subp>agraph 7,a71 ! entire  
am\nt ( ! di/ribution %all be treat$ z  
includible 9 gross income )\t reg>d to  
su* subp>agraph to ! ext5t t su* am\nt  
does n exce$ ! aggregate am\nt :i* w\ld 
h be5 s includible if all am\nts 9 all  
individual retirem5t plans ( !          
individual 7 di/ribut$ dur+ su* taxable 
ye> & all su* plans 7 treat$ z #a       
contract = purposes ( det]m9+ "u section
 #gb ! aggregate am\nt :i* w\ld h be5 s 
includible4 ,prop] adju/m5ts %all be    
made 9 apply+ section #gb to o!r        
di/ributions 9 su* taxable ye> &        
subsequ5t taxable ye>s4  7,d7 ,gift tax 
treatm5t ,s mu* ( any transf] ( a       
di/ribution describ$ 9 subp>agraph 7,a7 
by ! individual to an eligible relative 
z is us$ by su* eligible relative = a   
d[n paym5t or clos+ co/s associat$ )    
acquir+ a pr9cipal resid5ce ( su*       
eligible relative %all n be treat$ z a  
gift = purposes ( section #bejc7;a74    
7,e7 ,t]m9ation date ,subp>agraph 7,a7  

%all n apply to di/ributions made 9     
taxable ye>s beg9n+ aft] ,decemb] #ca1  
#bjcj4  4  7#d7 #deg7;b7 plans ,section 
#deg7;e7 ( su* ,code is am5d$ by add+ at
 ! end ! foll[+ new p>agraph3  7#ai7    
,di/ributions = a d[n paym5t or clos+   
co/s = a pr9cipal resid5ce  7,a7 ,9     
g5]al ,! rules ( section #djb7m7 %all   
apply to di/ributions "u an eligible    
def]r$ comp5sation plan e/abli%$ &      
ma9ta9$ by an employ] describ$ 9        
p>agraph 7#a77;,a74  7,b7 ,t]m9ation    
date ,subp>agraph 7,a7 %all n apply to  
di/ributions made 9 taxable ye>s beg9n+ 
aft] ,decemb] #ca1 #bjcj4  4  7b7       
,effective date ,! am5dm5ts made by ?is 
section %all apply to di/ributions made 
9 taxable ye>s beg9n+ aft] ,decemb] #ca1
 #bjbe4