text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Retirement Account Distribution 
  Improvement Act of 2008''.
  
  SEC. 2. TEMPORARY WAIVER OF REQUIRED MINIMUM DISTRIBUTION RULES FOR 
                CERTAIN RETIREMENT PLANS AND ACCOUNTS.
  
      (a) In General.--Section 401(a)(9) of the Internal Revenue Code of 
  1986 (relating to required distributions) is amended by adding at the 
  end the following new subparagraph:
                      ``(H) Temporary waiver of minimum required 
                  distribution.--
                              ``(i) In general.--The requirements of this 
                          paragraph shall not apply in calendar year 
                          2008, 2009, or 2010 to--
                                      ``(I) a defined contribution plan 
                                  which is described in this subsection 
                                  or in section 403(a) or 403(b),
                                      ``(II) a defined contribution plan 
                                  which is an eligible deferred 
                                  compensation plan described in section 
                                  457(b) but only if such plan is 
                                  maintained by an employer described in 
                                  section 457(e)(1)(A), or
                                      ``(III) an individual retirement 
                                  plan.
                              ``(ii) Plans only to make elective 
                          distributions.--A trust forming part of a plan 
                          shall not constitute a qualified trust under 
                          this subsection unless the plan provides that 
                          it will not make a payment or distribution 
                          during calendar year 2009 or 2010 which would 
                          otherwise be made to meet the requirements of 
                          this paragraph unless the employee or 
                          beneficiary elects to have such payment or 
                          distribution made. This clause shall not apply 
                          to an employee or beneficiary who is receiving, 
                          after the annuity starting date, distributions 
                          under the plan through an annuity contract 
                          issued by a company licensed to do business as 
                          an insurance company under the laws of any 
                          State.
                              ``(iii) Election.--An election under clause 
                          (ii) shall be made at such time and in such 
                          manner as the Secretary may prescribe. The 
                          Secretary may permit an employer to offer only 
                          1 election that applies to 2009 and 2010 or may 
                          require employers to offer separate elections 
                          for each calendar year.
                              ``(iv) Individual retirement plans exempt 
                          from elective distribution requirement.--In the 
                          case of an individual retirement account or 
                          annuity described in section 408, this 
                          subparagraph shall be applied without regard to 
                          clauses (ii) and (iii).
                              ``(v) Special rules regarding waiver 
                          period.--For purposes of this paragraph--
                                      ``(I) the required beginning date 
                                  with respect to any individual shall be 
                                  determined without regard to this 
                                  subparagraph for purposes of applying 
                                  this paragraph to calendar years after 
                                  2010, and
                                      ``(II) if clause (ii) of 
                                  subparagraph (B) applies to such 
                                  individual, the 5-year period described 
                                  in such clause shall be determined 
                                  without regard to calendar years 2008, 
                                  2009, or 2010.''.
      (b) Eligible Rollover Distributions.--Section 402(c)(4) of the 
  Internal Revenue Code of 1986 (defining eligible rollover distribution) 
  is amended by adding at the end the following new flush sentence:
          ``If all or any portion of a distribution during 2008, 2009, or 
          2010 is treated as an eligible rollover distribution but would 
          not be so treated if the minimum distribution requirements 
          under section 401(a)(9) had applied during such calendar year, 
          such distribution shall not be treated as an eligible rollover 
          distribution for purposes of section 401(a)(31) or 3405(c) or 
          subsection (f) of this section''.
      (c) Effective Dates.--
              (1) In general.--The amendments made by this section shall 
          apply to taxable years beginning after December 31, 2007.
              (2) Recontributions of distributions in 2008 or early 
          2009.--
                      (A) In general.--If a person receives 1 or more 
                  eligible distributions, the person may, on or before 
                  July 1, 2009, make one or more contributions (in an 
                  aggregate amount not exceeding all eligible 
                  distributions) to an eligible retirement plan and to 
                  which a rollover contribution of such distribution 
                  could be made under section 402(c), 403(a)(4), 
                  403(b)(8), 408(d)(3), or 457(e)(16) of the Internal 
                  Revenue Code of 1986, as the case may be. For purposes 
                  of the preceding sentence, rules similar to the rules 
                  of clauses (ii) and (iii) of section 402(c)(11)(A) of 
                  such Code shall apply in the case of a beneficiary who 
                  is not the surviving spouse of the employee or of the 
                  owner of the individual retirement plan.
                      (B) Eligible distribution.--For purposes of this 
                  paragraph--
                              (i) In general.--Except as provided in 
                          clause (ii), the term ``eligible distribution'' 
                          means an applicable distribution to a person 
                          from an individual account or annuity--
                                      (I) under a plan which is described 
                                  in clause (iv), and
                                      (II) from which a distribution 
                                  would, but for the application of 
                                  section 401(a)(9)(H) of such Code, have 
                                  been required to have been made to the 
                                  individual for 2008 or 2009, whichever 
                                  is applicable, in order to satisfy the 
                                  requirements of sections 401(a)(9), 
                                  404(a)(2), 403(b)(10), 408(a)(6), 
                                  408(b)(3), and 457(d)(2) of such Code.
                              (ii) Eligible distributions limited to 
                          required distributions.--The aggregate amount 
                          of applicable distributions which may be 
                          treated as eligible distributions for purposes 
                          of this paragraph shall not exceed--
                                      (I) for purposes of applying 
                                  subparagraph (A) to distributions made 
                                  in 2008, the amount which would, but 
                                  for the application of section 
                                  401(a)(9)(H) of such Code, have been 
                                  required to have been made to the 
                                  individual in order to satisfy the 
                                  requirements of sections 401(a)(9), 
                                  404(a)(2), 403(b)(10), 408(a)(6), 
                                  408(b)(3), and 457(d)(2) of such Code 
                                  for 2008, and
                                      (II) for purposes of applying 
                                  subparagraph (A) to distributions made 
                                  in 2009, the sum of the amount which 
                                  would, but for the application of such 
                                  section 401(a)(9)(H), have been 
                                  required to have been made to the 
                                  individual in order to satisfy such 
                                  requirements for 2009, plus the excess 
                                  (if any) of the amount described in 
                                  subclause (I) which may be distributed 
                                  in 2009 to meet such requirements for 
                                  2008 over the portion of such amount 
                                  taken into account under subclause (I) 
                                  for distributions made in 2008.
                              (iii) Applicable distribution.--
                                      (I) In general.--The term 
                                  ``applicable distribution'' means a 
                                  payment or distribution which is made 
                                  during the period beginning on January 
                                  1, 2008, and ending on June 30, 2009.
                                      (II) Exception for minimum required 
                                  distributions for other years.--Such 
                                  term shall not include a payment or 
                                  distribution which is required to be 
                                  made in order to satisfy the 
                                  requirements of section 401(a)(9), 
                                  404(a)(2), 403(b)(10), 408(a)(6), 
                                  408(b)(3), or 457(d)(2) of such Code 
                                  for a calendar year other than 2008 or 
                                  2009.
                                      (III) Exception for payments in a 
                                  series.--In the case of any plan 
                                  described in clause (iv)(I), such term 
                                  shall not include any payment or 
                                  distribution made in 2009 which is a 
                                  payment or distribution described in 
                                  section 402(c)(4)(A).
                              (iv) Plans described.--A plan is described 
                          in this clause if the plan is--
                                      (I) a defined contribution plan 
                                  (within the meaning of section 414(i) 
                                  of such Code) which is described in 
                                  section 401, 403(a), or 403(b) of such 
                                  Code or which is an eligible deferred 
                                  compensation plan described in section 
                                  457(b) of such Code maintained by an 
                                  eligible employer described in section 
                                  457(e)(1)(A) of such Code, or
                                      (II) an individual retirement plan 
                                  (as defined in section 7701(a)(37) of 
                                  such Code).
                      (C) Treatment of repayments of distributions from 
                  eligible retirement plans other than iras.--For 
                  purposes of the Internal Revenue Code of 1986, if a 
                  contribution is made pursuant to subparagraph (A) with 
                  respect to a payment or distribution from a plan other 
                  than an individual retirement plan, then the taxpayer 
                  shall, to the extent of the amount of the contribution, 
                  be treated as having received the payment or 
                  distribution in an eligible rollover distribution (as 
                  defined in section 402(c)(4) of such Code) and as 
                  having transferred the amount to the plan in a direct 
                  trustee to trustee transfer.
                      (D) Treatment of repayments for distributions from 
                  iras.--For purposes of the Internal Revenue Code of 
                  1986, if a contribution is made pursuant to 
                  subparagraph (A) with respect to a payment or 
                  distribution from an individual retirement plan (as 
                  defined by section 7701(a)(37) of such Code), then, to 
                  the extent of the amount of the contribution, such 
                  payments or distributions shall be treated as a 
                  distribution that satisfies subparagraphs (A) and (B) 
                  of section 408(d)(3) of such Code and as having been 
                  transferred to the individual retirement plan in a 
                  direct trustee to trustee transfer.
              (3) Provisions relating to plan or contract amendments.--
                      (A) In general.--If this paragraph applies to any 
                  pension plan or contract amendment, such pension plan 
                  or contract shall be treated as being operated in 
                  accordance with the terms of the plan during the period 
                  described in subparagraph (B)(ii)(I).
                      (B) Amendments to which paragraph applies.--
                              (i) In general.--This paragraph shall apply 
                          to any amendment to any pension plan or annuity 
                          contract which--
                                      (I) is made by pursuant to the 
                                  amendments made by this section, and
                                      (II) is made on or before the last 
                                  day of the first plan year beginning on 
                                  or after January 1, 2011.
                          In the case of a governmental plan, subclause 
                          (II) shall be applied by substituting ``2012'' 
                          for ``2011''.
                              (ii) Conditions.--This paragraph shall not 
                          apply to any amendment unless--
                                      (I) during the period beginning on 
                                  January 1, 2009, and ending on December 
                                  31, 2010 (or, if earlier, the date the 
                                  plan or contract amendment is adopted), 
                                  the plan or contract is operated as if 
                                  such plan or contract amendment were in 
                                  effect; and
                                      (II) such plan or contract 
                                  amendment applies retroactively for 
                                  such period.
target: Retirement Account Distribution Improvement Act of 2008 - Amends the Internal Revenue Code to suspend in 2008, 2009, and 2010 requirements for minimum distributions from tax-deferred retirement plans. Permits taxpayers who have already received a minimum distribution in 2008 to recontribute such distribution to their retirement plans by July 1, 2009.
feat_title: A bill to amend the Internal Revenue Code of 1986 to suspend the minimum required pension distribution rules for 2008, 2009, and 2010.