Congress Approves Tax Deferral For
American Airlines Bankruptcy Rollovers

Dec. 16, 2014, 5:00 AM

Employees of American Airlines who received compensation for pension losses in the airline’s bankruptcy will be able to defer income taxes when they transfer the money into individual retirement accounts, under legislation that received final passage in Congress.

The House and Senate each passed the bill (H.R. 2591) the week of Dec. 8 by unanimous consent.

The legislation, sponsored by Rep. Michael G. Grimm (R-N.Y.), amends the Federal Aviation Administration Modernization and Reform Act of 2012 to allow the favorable tax treatment, which mirrors the approach afforded employees of other airlines that filed for bankruptcy prior to 2011. ...

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