text: 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.
target: 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.
feat_title: A bill to amend the Internal Revenue Code of 1986 to provide a waiver of the 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, and for other purposes.