To amend the Internal Revenue Code of 1986 to provide that distributions to unemployed individuals from individual retirement accounts will not be subject to the additional tax on early distributions.

[AI summary unavailable — showing source text] Amends the Internal Revenue Code to allow penalty-free distributions from retirement plans to individuals during any period for which such individuals: (1) are receiving unemployment compensation; and (2) would have been entitled to unemployment compensation, but for termination of the period during which compensation was payable or exhaustion of such individual's rights to compensation.…