SECTION 1. 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 
                        or 2009.
                            ``(ii) Plans must allow elections.--A trust 
                        forming part of a plan shall not constitute a 
                        qualified trust under this subsection unless 
                        the plan provides that it will allow an 
                        employee or beneficiary to elect to eliminate 
                        or reduce payments or distributions during 
                        calendar year 2009 which would otherwise be 
                        made to meet the requirements of this 
                        paragraph. 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.
                            ``(iv) Coordination with similar 
                        requirements.--In the case of--
                                    ``(I) an individual retirement 
                                account or annuity described in section 
                                408, this subparagraph shall be applied 
                                without regard to clauses (ii) and 
                                (iii), and
                                    ``(II) an eligible deferred 
                                compensation plan described in section 
                                457(b), this subparagraph shall only 
                                apply to such a plan maintained by an 
                                employer described in section 
                                457(e)(1)(A).
                            ``(v) Special rules regarding suspension 
                        period.--For purposes of this paragraph--
                                    ``(I) the required beginning date 
                                with respect to such individual shall 
                                be determined without regard to this 
                                subparagraph for purposes of applying 
                                this paragraph to calendar years after 
                                2009, and
                                    ``(II) if clause (ii) of 
                                subparagraph (B) applies to such 
                                individual, the amount of any 
                                distribution required by this paragraph 
                                for 2008 or 2009 which was not made (or 
                                rolled over) by reason of this 
                                subparagraph shall be required to be 
                                distributed in 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:
        ``Subparagraph (A) shall not apply to any distributions made in 
        2008 or 2009 to an individual who is not subject to the 
        required minimum distribution rules under section 401(a)(9) for 
        the calendar year solely by reason of the application of 
        section 401(a)(9)(H). In the case of a distribution which is 
        treated as an eligible rollover distribution solely by reason 
        of the preceding sentence, 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) Extension of rollover periods for distributions in 
        2008.--
                    (A) In general.--In the case of a distribution from 
                an eligible retirement plan made during 2008 to an 
                individual who is not subject to the required minimum 
                distribution rules under section 401(a)(9) of the 
                Internal Revenue Code of 1986 for the calendar year 
                solely by reason of the application of section 
                401(a)(9)(H) of such Code--
                            (i) the 60-day period under section 
                        402(c)(3) or 408(d)(3) of such Code during 
                        which such distribution may be rolled over, 
                        whichever is applicable, shall not end before 
                        the later of--
                                    (I) the due date (determined 
                                without regard to any extension) for 
                                filing the return of tax imposed by 
                                chapter 1 of such Code for the taxable 
                                year in which the distribution was 
                                made, or
                                    (II) the date which is 60 days 
                                after the date of the enactment of this 
                                Act,
                            (ii) in the case of an individual 
                        retirement plan, the limitation under section 
                        408(d)(3)(B) of such Code shall not apply to 
                        any rollover contribution of the distribution, 
                        and
                            (iii) subject to such rules or guidance as 
                        the Secretary of the Treasury or the 
                        Secretary's delegate may prescribe--
                                    (I) notwithstanding section 
                                408(d)(3)(C) of such Code, if such 
                                individual is the beneficiary of an 
                                inherited individual retirement account 
                                or annuity, the individual may rollover 
                                such distribution, and
                                    (II) notwithstanding section 
                                402(c)(11) of such Code, such 
                                individual shall not be treated as 
                                failing to meet the requirements of 
                                such section solely because the 
                                transfer is not made in a direct 
                                trustee-to-trustee transfer.
                    (B) Eligible retirement plan.--For purposes of this 
                paragraph, the term ``eligible retirement plan'' has 
                the meaning given such term by section 402(c)(8)(B) of 
                such Code.
            (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 reason of 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, 2009 (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.
Amends the Internal Revenue Code to suspend in 2008 and 2009 requirements for minimum distributions from tax-deferred retirement plans. Permits taxpayers who have already received a minimum distribution to recontribute such distribution to their retirement plans.
A bill to amend the Internal Revenue Code of 1986 to suspend the minimum required pension distribution rules for 2008 and 2009.