S.3358 - Flood Emergency Tax Relief Act of 2016 (FLETRA)114th Congress (2015-2016)
|Sponsor:||Sen. Cassidy, Bill [R-LA] (Introduced 09/20/2016)|
|Committees:||Senate - Finance|
|Latest Action:||Senate - 09/20/2016 Read twice and referred to the Committee on Finance. (All Actions)|
This bill has the status Introduced
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Summary: S.3358 — 114th Congress (2015-2016)All Information (Except Text)
Introduced in Senate (09/20/2016)
Flood Emergency Tax Relief Act of 2016 (FLETRA)
This bill amends the Internal Revenue Code to permit individuals impacted by flooding in the Mississippi Delta to make penalty-free withdrawals from retirement accounts.
The bill waives the 10% additional tax on early distributions from retirement plans for up to $100,000 in distributions made on or after August 11, 2016, and before January 1, 2018. The distributions must be made to an individual: (1) whose principal place of abode on August 11, 2016, is located in the Mississippi River Delta disaster area, and (2) who has sustained an economic loss by reason of the severe storms and flooding giving rise to the Presidential declaration of a major disaster area in Louisiana on or after August 11, 2016, and before September 1, 2016.
A taxpayer who has received such a distribution may: (1) repay the distribution by making additional contributions to a retirement account within three years, and (2) include the distribution in gross income by dividing the amount over a three-year period.