article: SECTION 1. SHORT TITLE. This Act may be cited as the ``Military Call-Up Relief Act''. SEC. 2. WAIVER OF EARLY WITHDRAWAL PENALTY FOR DISTRIBUTIONS FROM QUALIFIED RETIREMENT PLANS TO INDIVIDUALS CALLED TO ACTIVE DUTY DURING THE NATIONAL EMERGENCY DECLARED BY THE PRESIDENT ON SEPTEMBER 14, 2001. (a) Waiver For Certain Distributions.-- (1) In general.--Section 72(t)(2) of the Internal Revenue Code of 1986 (relating to 10-percent additional tax on early distributions from qualified retirement plans) is amended by adding at the end the following: ``(G) Distributions to individuals performing national emergency active duty.--Any distribution to an individual who, at the time of the distribution, is a member of a reserve component called or ordered to active duty pursuant to a provision of law referred to in section 101(a)(13)(B) of title 10, United States Code, during the period of the national emergency declared by the President on September 14, 2001.''. (2) Waiver of underpayment penalty.--Section 6654(e)(3) of such Code (relating to waiver in certain cases) is amended by adding at the end the following: ``(C) Certain early withdrawals from retirement plans.--No addition to tax shall be imposed under subsection (a) with respect to any underpayment to the extent such underpayment was created or increased by any distribution described in section 72(t)(2)(G).''. (3) Effective date.--The amendments made by this subsection shall apply to distributions made to an individual after September 13, 2001. (b) Catch-up Contributions Allowed.-- (1) Individual retirement accounts.--Section 219(b)(5) of the Internal Revenue Code of 1986 (relating to deductible amount) is amended by adding at the end the following: ``(D) Catch-up contributions for certain distributions.--In the case of an individual who has received a distribution described in section 72(t)(2)(G), the deductible amount for any taxable year shall be increased by an amount equal to-- ``(i) the aggregate amount of such distributions (not attributable to earnings) made with respect to such individual, over ``(ii) the aggregate amount of such distributions (not attributable to earnings) previously taken into account under this subparagraph or section 414(w).''. (2) Roth iras.--Section 408A(c) of such Code (relating to treatment of contributions) is amended by redesignating paragraph (7) as paragraph (8) and by inserting after paragraph (6) the following: ``(7) Catch-up contributions for certain distributions.-- Any contribution described in section 219(b)(5)(D) shall not be taken into account for purposes of paragraph (2).''. (3) Employer plans.--Section 414 of such Code (relating to definitions and special rules) is amended by adding at the end the following: ``(w) Catch-up contributions for certain distributions.-- ``(1) In general.--An applicable employer plan shall not be treated as failing to meet any requirement of this title solely because the plan permits an applicable participant to make additional elective deferrals in any plan year. ``(2) Limitation on amount of additional deferrals.-- ``(A) In general.--A plan shall not permit additional elective deferrals under paragraph (1) for any year in an amount greater than the lesser of-- ``(i) the applicable dollar amount, or ``(ii) the excess (if any) of-- ``(I) the participant's compensation (as defined in section 415(c)(3)) for the year, over ``(II) any other elective deferrals of the participant for such year which are made without regard to this subsection. ``(B) Applicable dollar amount.--For purposes of this paragraph, the applicable dollar amount with respect to a participant shall be an amount equal to-- ``(i) the aggregate amount of distributions described in section 72(t)(2)(G) (not attributable to earnings) made with respect to such participant, over ``(ii) the aggregate amount of such distributions (not attributable to earnings) previously taken into account under this subsection or section 219(b)(5)(B). ``(3) Treatment of contributions.--Rules similar to the rules of paragraphs (3) and (4) of subsection (v) shall apply with respect to contributions made under this subsection. ``(4) Definitions.--For purposes of this subsection, the terms `applicable employer plan' and `elective deferral' have the same meanings given such terms in subsection (v)(6).''. (4) Conforming amendment.--Section 414(v)(2)(A)(ii)(II) of such Code (relating to limitation on amount of additional deferrals) is amended by inserting ``(other than deferrals under subsection (w))'' after ``deferrals''. (5) Effective date.--The amendments made by this subsection shall apply to contributions in taxable years ending after December 31, 2001.
summary: Military Call-up Relief Act - Amends the Internal Revenue Code to waive the ten percent early withdrawal penalty for distributions from qualified retirement plans to individuals called to active duty during the national emergency declared by the President on September 14, 2001.