1. Short title
This Act may be cited as the “Employee Hardship Financial Relief Act of 2013”.
Employee Hardship Financial Relief Act of 2013
A BILL
To amend the Internal Revenue Code of 1986 to allow penalty-free withdrawals from the Federal Thrift Savings Fund to employees who are furloughed as a result of the Federal budget sequester.
2. Penalty-free withdrawals from Thrift Savings fund to Federal employees furloughed as a result of sequester
In general— Paragraph (2) of section 72(t) of the Internal Revenue Code of 1986 (relating to subsection not to apply to certain distributions) is amended by adding at the end the following new subparagraph:
“(H) Distributions from thrift savings fund to furloughed Federal employees—Distributions to an individual from the Thrift Savings Fund during the period—
“(i) beginning on the date that the individual is furloughed (as defined in section 7811(a)(5) of title 5, United States Code) because of lack of funds, and
“(ii) ending on the date which is 30 days after such furlough ceases for such individual,”
Effective date— The amendment made by this section shall apply to distributions after the date of the enactment of this Act.