To amend the Internal Revenue Code of 1986 to exclude from gross income distributions from individual retirement plans during periods of unemployment in 2009, 2010, and 2011.

Excludes from gross income, for income tax purposes, distributions from a tax-exempt retirement plan made after December 31, 2008, and before January 1, 2012, to individuals, including self-employed individuals, who have become unemployed and who have received unemployment compensation for 12 consecutive weeks.

Provides that such exclusion shall not apply to any distribution made after the individual has been employed for at least 60 days after the separation from employment.