[Page S1532]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 3523. Ms. CANTWELL submitted an amendment intended to be proposed 
to amendment SA 3452 proposed by Mr. Rockefeller to the bill H.R. 1586, 
to impose an additional tax on bonuses received from certain TARP 
recipients; which was ordered to lie on the table; as follows:

       At the end of title VIII, add the following:

     SEC. ___. ROLLOVER OF AMOUNTS RECEIVED IN AIRLINE CARRIER 
                   BANKRUPTCY.

       (a) General Rules.--
       (1) Rollover of airline payment amount.--If a qualified 
     airline employee receives any airline payment amount and 
     transfers any portion of such amount to a traditional IRA 
     within 180 days of receipt of such amount (or, if later, 
     within 180 days of the date of the enactment of this Act), 
     then such amount (to the extent so transferred) shall be 
     treated as a rollover contribution described in section 
     402(c) of the Internal Revenue Code of 1986. A qualified 
     airline employee making such a transfer may exclude from 
     gross income the amount transferred, in the taxable year in 
     which the airline payment amount was paid to the qualified 
     airline employee by the commercial passenger airline carrier.
       (2) Transfer of amounts attributable to airline payment 
     amount following rollover to roth ira.--A qualified airline 
     employee who made a rollover of an airline payment amount to 
     a Roth IRA pursuant to section 125 of the Worker, Retiree, 
     and Employer Recovery Act of 2008, may transfer to a 
     traditional IRA all or any part of the Roth IRA attributable 
     to such rollover, and the transfer to the traditional IRA 
     will be deemed to have been made at the time of the rollover 
     to the Roth IRA, if such transfer is made within 180 days of 
     the date of the enactment of this Act. A qualified airline 
     employee making such a transfer may exclude from gross income 
     the airline payment amount previously rolled over to the Roth 
     IRA, to the extent an amount attributable to the previous 
     rollover was transferred to a traditional IRA, in the taxable 
     year in which the airline payment amount was paid to the 
     qualified airline employee by the commercial passenger 
     airline carrier.
       (3) Extension of time to file claim for refund.--A 
     qualified airline employee who excludes an amount from gross 
     income in a prior taxable year under paragraph (1) or (2) may 
     reflect such exclusion in a claim for refund filed within the 
     period of limitation under section 6511(a) (or, if later, 
     April 15, 2011).
       (b) Treatment of Airline Payment Amounts and Transfers for 
     Employment Taxes.--For purposes of chapter 21 of the Internal 
     Revenue Code of 1986 and section 209 of the Social Security 
     Act, an airline payment amount shall not fail to be treated 
     as a payment of wages by the commercial passenger airline 
     carrier to the qualified airline employee in the taxable year 
     of payment because such amount is excluded from the qualified 
     airline employee's gross income under subsection (a).
       (c) Definitions and Special Rules.--For purposes of this 
     section--
       (1) Airline payment amount.--
       (A) In general.--The term ``airline payment amount'' means 
     any payment of any money or other property which is payable 
     by a commercial passenger airline carrier to a qualified 
     airline employee--
       (i) under the approval of an order of a Federal bankruptcy 
     court in a case filed after September 11, 2001, and before 
     January 1, 2007, and
       (ii) in respect of the qualified airline employee's 
     interest in a bankruptcy claim against the carrier, any note 
     of the carrier (or amount paid in lieu of a note being 
     issued), or any other fixed obligation of the carrier to pay 
     a lump sum amount.

     The amount of such payment shall be determined without regard 
     to any requirement to deduct and withhold tax from such 
     payment under sections 3102(a) and 3402(a).
       (B) Exception.--An airline payment amount shall not include 
     any amount payable on the basis of the carrier's future 
     earnings or profits.
       (2) Qualified airline employee.--The term ``qualified 
     airline employee'' means an employee or former employee of a 
     commercial passenger airline carrier who was a participant in 
     a defined benefit plan maintained by the carrier which--
       (A) is a plan described in section 401(a) of the Internal 
     Revenue Code of 1986 which includes a trust exempt from tax 
     under section 501(a) of such Code, and
       (B) was terminated or became subject to the restrictions 
     contained in paragraphs (2) and (3) of section 402(b) of the 
     Pension Protection Act of 2006.
       (3) Traditional ira.--The term ``traditional IRA'' means an 
     individual retirement plan (as defined in section 7701(a)(37) 
     of the Internal Revenue Code of 1986) which is not a Roth 
     IRA.
       (4) Roth ira.--The term ``Roth IRA'' has the meaning given 
     such term by section 408A(b) of such Code.
       (d) Surviving Spouse.--If a qualified airline employee died 
     after receiving an airline payment amount, or if an airline 
     payment amount was paid to the surviving spouse of a 
     qualified airline employee in respect of the qualified 
     airline employee, the surviving spouse of the qualified 
     airline employee may take all actions permitted under section 
     125 of the Worker, Retiree and Employer Recovery Act of 2008, 
     or under this section, to the same extent that the qualified 
     airline employee could have done had the qualified airline 
     employee survived.
       (e) Effective Date.--This section shall apply to transfers 
     made after the date of the enactment of this Act with respect 
     to airline payment amounts paid before, on, or after such 
     date.

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