Dave Thomas Adoption Act of 2013

“(H) Qualified adoption expenses

“(i) In general—Distributions from an individual retirement plan to the extent that the amount of such distributions does not exceed the lesser of—

“(I) $10,000 for the taxable year with respect to the adoption of a child, or

“(II) the amount determined under clause (ii).

“(ii) Determination of expenses not covered by credit—The amount determined under this clause is the excess (if any) of—

“(I) the qualified adoption expenses (as defined in section 23(d)) paid by the taxpayer during the taxable year with respect to the adoption of such child, over

“(II) the amount of the credit allowable under section 23 for such expenses (determined as if such credit were allowed for such year without regard to any limitation based on liability for tax).

“(iii) Special rules for child with special needs—In the case of an adoption of a child with special needs (as defined in section 23(d)(3))—

“(I) subclauses (I) and (II) of clause (i) shall not apply, and

“(II) a distribution during the applicable period from an individual retirement plan with respect to such adoption shall not be taken into account under this subparagraph to the extent that such distribution, when added to all other distributions with respect to such adoption from individual retirement plans for the applicable period, exceeds $10,000.

“(iv) Ordering rule—Distributions shall not be taken into account under clause (i) if such distributions are described in subparagraph (A), (C), (D), (E), (F), or (G) or to the extent paragraph (1) does not apply to such distributions by reason of subparagraph (B).”