To amend the Internal Revenue Code of 1986 to allow individuals who served in a combat zone as a member of the Armed Forces of the United States to make distributions from qualified retirement plans beginning at age 55 without being subject to the 10-percent additional tax for early withdrawal.

H.R. 1094 proposes to lower the age at which military veterans who served in combat zones can withdraw funds from their retirement accounts without penalty. Under current law, most individuals must wait until age 59 ½ to make withdrawals from qualified plans or face a 10-percent early distribution tax. This bill would allow eligible combat veterans to begin accessing those funds at age 55 without incurring that additional tax penalty.