by John Darer CLU ChFC CSSC RSP
Is help at hand for Americans who have had to tap their pension plans and retirement accounts to keep their head above water?
H.R 6474 is a bill introduced by Jim McDermott (D-Wash.) would amend the Internal Revenue Code of 1986 to exclude from gross income distributions from individual retirement plans during periods of unemployment in 2009, 2010, and 2011.
If enacted the following 3 conditions would apply
A) taxpayer has received unemployment compensation for 12 consecutive weeks under any Federal or State unemployment compensation law by reason of such separation,
(B) such distributions are made during any taxable year during which such unemployment compensation is paid or the succeeding taxable year, and
(C) such distribution is made after December 31, 2008, and before January 1, 2012.
Self employed individuals would be cut a break too under the proposed bill.
"To the extent provided in regulations by the Secretary of the Treasury, a self-employed individual shall be treated as meeting the requirements of paragraph (1) if, under Federal or State law, the individual would have received unemployment compensation but for the fact the individual was self-employed".
The bill has been referred to the House Ways and Means Committee. Stay tuned!