Originally Posted by Check Essential

Chuck-
Its kinda complex, but here's the short version--

The Delta, Northwest, United and USAir pilots all received certain distributions of cash following bankruptcy. In some cases the distribution was substantial.
That money was all taxed as ordinary income.
The gov't. did make a 1 time exemption to the income limits for contributions to Roth IRAs but it still was counted as ordinary income.
This new law will allow the funds to be treated as if they were roll-overs to regular IRA accounts which means there would be no income tax due.
That means those of us who received those distributions can now convert them to regular IRAs and get a BIG tax refund.

Its only fair. We lost our entire pension in those bankruptcies.