Fairness for Early Withdrawers Act

I 116TH CONGRESS 2D SESSION H. R. 7016 To waive the 60-day rule in case of rollover of otherwise required minimum distributions in 2020. IN THE HOUSE OF REPRESENTATIVES MAY 26, 2020 Mr. MAST introduced the following bill; which was referred to the Committee on Ways and Means A BILL To waive the 60-day rule in case of rollover of otherwise required minimum distributions in 2020. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Fairness for Early 4 Withdrawers Act’’. 5 VerDate Sep 11 2014 18:56 Jun 17, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H7016.IH H7016 pamtmann on DSKBC07HB2PROD with BILLS 2 •HR 7016 IH SEC. 2. WAIVER OF 60-DAY RULE IN CASE OF ROLLOVER OF 1 OTHERWISE REQUIRED MINIMUM DISTRIBU- 2 TIONS IN 2020. 3 (a) QUALIFIED TRUSTS.—Section 402(c)(3) of the 4 Internal Revenue Code of 1986 is amended by adding at 5 the end the following new subparagraph: 6 ‘‘(D) EXCEPTION FOR ROLLOVER OF OTH- 7 ERWISE REQUIRED MINIMUM DISTRIBUTIONS IN 8 2020.—In the case of an eligible rollover dis- 9 tribution described in the second sentence of 10 paragraph (4), subparagraph (A) shall not 11 apply to any transfer of such distribution made 12 before December 1, 2020.’’. 13 (b) INDIVIDUAL RETIREMENT ACCOUNTS.—Section 14 408(d)(3) of such Code is amended by adding at the end 15 the following new subparagraph: 16 ‘‘(J) WAIVER OF 60-DAY RULE AND ONCE 17 PER-YEAR LIMITATION FOR CERTAIN 2020 ROLL- 18 OVERS.—In the case of a distribution during 19 2020 to which, under subparagraph (E), this 20 paragraph would not have applied had the min- 21 imum distribution requirements of section 22 401(a)(9) applied during such years, the 60-day 23 requirement under subparagraph (A) and the 24 limitation under subparagraph (B) shall not 25 apply to such distribution to the extent the 26 VerDate Sep 11 2014 18:56 Jun 17, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H7016.IH H7016 pamtmann on DSKBC07HB2PROD with BILLS 3 •HR 7016 IH amount is paid into an individual retirement ac- 1 count, individual retirement annuity (other than 2 an endowment contract), or eligible retirement 3 plan (as defined in subparagraph (A)) as other- 4 wise required under such subparagraph before 5 December 1, 2020.’’. 6 (c) EFFECTIVE DATE.—The amendments made by 7 this section shall apply to taxable years beginning after 8 December 31, 2019. 9 Æ VerDate Sep 11 2014 18:56 Jun 17, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\H7016.IH H7016 pamtmann on DSKBC07HB2PROD with BILLS