,,ii  #aacth ,,congress  #ast ,session  
,s4 #fjf  ,,in ,,the ,,senate ,,of ,,the
 ,,united ,,states  ,march #ai1 #bjac   
,mr4 ,nelson 7for himself and ,mr4      
,enzi7 introduced the following bill2   
which was read twice and referred to the
 ,committee on ,finance  ,a ,,bill  ,to 
amend the ,internal ,revenue ,code of   
#aihf to modify the rules relating to   
loans made from a qualified employer    
plan1 and for other purposes4  #a4      
,short title ,this ,act may be cited as 
the ,shrinking ,emergency ,account      
,losses ,act of #bjac or the ,,seal     
,act4  #b4 ,extended rollover period for
 the rollover of plan loan offset       
amounts in certain cases  7a7 ,in       
general ,paragraph 7#c7 of section      
#djb7;c7 of the ,internal ,revenue ,code
 of #aihf is amended by adding at the   
end the following new subparagraph3     
7,c7 ,rollover of certain plan loan     
offset amounts  7i7 ,in general ,in the 
case of a qualified plan loan offset    
amount1 paragraph 7#a7 shall not apply  

to any transfer of such amount made     
after the due date 7including           
extensions7 for filing the return of tax
 for the taxable year in which such     
amount is treated as distributed from a 
qualified employer plan4  7ii7          
,qualified plan loan offset amount ,for 
purposes of this subparagraph1 the term 
qualified plan loan offset amount means 
a plan loan offset amount which is      
treated as distributed from a qualified 
employer plan to a participant or       
beneficiary solely by reason of--  7,i7 
the termination of the qualified        
employer plan1 or  7,,ii7 the failure to
 meet the repayment terms of the loan   
from such plan because of the separation
 from service of the participant        
7whether due to layoff1 cessation of    
business1 termination of employment1 or 
otherwise74  7iii7 ,plan loan offset    
amount ,for purposes of clause 7ii71 the
 term plan loan offset amount means the 
amount by which the participant's       
accrued benefit under the plan is       

reduced in order to repay a loan from   
the plan4  7iv7 ,limitation ,this       
subparagraph shall not apply to any plan
 loan offset amount unless such plan    
loan offset amount relates to a loan to 
which section #gb7p77#a7 does not apply 
by reason of section #gb7p77#b74  7v7   
,qualified employer plan ,for purposes  
of this subsection1 the term qualified  
employer plan has the meaning given such
 term by section #gb7p77#d74  4  7b7    
,conforming amendment ,subparagraph 7,a7
 of section #djb7;c77#c7 of the         
,internal ,revenue ,code of #aihf is    
amended by striking subparagraph 7,b7   
and inserting subparagraphs 7,b7 and    
7,c74  7c7 ,effective date ,the         
amendments made by this section shall   
apply to transfers made after the date  
of the enactment of this ,act4  #c4     
,modification of rules governing        
hardship distributions ,not later than  
#a year after the date of the enactment 
of this ,act1 the ,secretary of the     
,treasury shall modify ,treasury        

,regulation section                     
#a4dja7k7-#a7;d77#c77;iv77,e7 to--  7#a7
 delete the prohibition imposed by      
paragraph 7#b7 thereof1 and  7#b7 to    
make any other modifications necessary  
to carry out the purposes of section    
#dja7k77#b77;,b77i77,,iv7 of the        
,internal ,revenue ,code of #aihf4  #d4 
,qualified employer plans prohibited    
from making loans through credit cards  
and other similar arrangements  7a7 ,in 
general ,paragraph 7#b7 of section      
#gb7p7 of the ,internal ,revenue ,code  
of #aihf is amended by redesignating    
subparagraph 7,d7 as subparagraph 7,e7  
and by inserting after subparagraph 7,c7
 the following new subparagraph3  7,d7  
,prohibition of loans through credit    
cards and other similar arrangements    
,subparagraph 7,a7 shall not apply to   
any loan which is made through the use  
of any credit card or any other similar 
arrangement4  4  7b7 ,effective date    
,the amendments made by this section    
shall apply to plan years beginning     

after the date which is #fj days after  
the date of the enactment of this ,act4