,,ii #aagth ,,congress #ast ,session ,s4 #behc ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,august #c1 #bjba,mr4 ,cassidy 7for himself and ,mr4 ,menendez7 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 provide for rules for the use of retirement funds in connection with federally declared disasters4 #a4 ,special rules for use of retirement funds in connection with qualified federally declared disasters 7a7 ,tax-,favored withdrawals from retirement plans 7#a7 ,in general ,paragraph 7#b7 of section #gb7t7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subparagraph3 7,i7 ,distributions from retirement plans in connection with federally declared disasters ,any qualified disaster recovery distribution4 4 7#b7 ,qualified disaster recovery distribution ,section #gb7t7 of such ,code is amended by adding at the end the following new paragraph3 7#aa7 ,qualified disaster recovery distribution ,for purposes of paragraph 7#b77;,i7-- 7,a7 ,in general ,except as provided in subparagraph 7,b71 the term qualified disaster recovery distribution means any distribution made-- 7i7 on or after the first day of the incident period of a qualified disaster and before the date that is #ahj days after the applicable date with respect to such disaster1 and 7ii7 to an individual whose principal place of abode at any time during the incident period of such qualified disaster is located in the qualified disaster area with respect to such qualified disaster and who has sustained an economic loss by reason of such qualified disaster4 7,b7 ,aggregate dollar limitation 7i7 ,in general ,for purposes of this subsection1 the aggregate amount of distributions received by an individual which may be treated as qualified disaster recovery distributions with respect to any qualified disaster shall not exceed the excess 7if any7 of-- 7,i7 #ajj1jjj1 over 7,,ii7 the sum of aggregate amounts treated as qualified disaster recovery distributions with respect to such qualified disaster received by such individual4 7ii7 ,treatment of plan distributions ,if a distribution to an individual would 7without regard to clause 7i77 be a qualified disaster recovery distribution1 a plan shall not be treated as violating any requirement of this title merely because the plan treats such distribution as a qualified disaster recovery distribution1 unless the aggregate amount of such distributions from all plans maintained by the employer 7and any member of any controlled group which includes the employer7 to such individual exceeds #ajj1jjj with respect to the same qualified disaster4 7iii7 ,controlled group ,for purposes of clause 7ii71 the term controlled group means any group treated as a single employer under subsection 7b71 7c71 7m71 or 7o7 of section #dad4 7iv7 ,special rule for individuals affected by more than one disaster ,the limitation of clause 7i7 shall be applied separately with respect to distributions made with respect to each qualified disaster4 7,c7 ,amount distributed may be repaid 7i7 ,in general ,any individual who receives a qualified disaster recovery distribution may1 at any time during the #c-year period beginning on the day after the date on which such distribution was received1 make one or more contributions in an aggregate amount not to exceed the amount of such distribution to an eligible retirement plan of which such individual is a beneficiary and to which a rollover contribution of such distribution could be made under section #djb7;c71 #djc7;a77#d71 #djc7;b77#h71 #djh7;d77#c71 or #deg7;e77#af71 as the case may be4 7ii7 ,treatment of repayments of distributions from eligible retirement plans other than iras ,for purposes of this title1 if a contribution is made pursuant to clause 7i7 with respect to a qualified disaster recovery distribution from a plan other than an individual retirement plan1 then the taxpayer shall1 to the extent of the amount of the contribution1 be treated as having received the qualified disaster recovery distribution in an eligible rollover distribution 7as defined in section #djb7;c77#d77 and as having transferred the amount to the eligible retirement plan in a direct trustee to trustee transfer within #fj days of the distribution4 7iii7 ,treatment of repayments for distributions from iras ,for purposes of this title1 if a contribution is made pursuant to clause 7i7 with respect to a qualified disaster recovery distribution from an individual retirement plan1 then1 to the extent of the amount of the contribution1 the qualified disaster recovery distribution shall be treated as a distribution described in section #djh7;d77#c7 and as having been transferred to the eligible retirement plan in a direct trustee to trustee transfer within #fj days of the distribution4 7,d7 ,income inclusion spread over #c-year period 7i7 ,in general ,in the case of any qualified disaster recovery distribution1 unless the taxpayer elects not to have this subparagraph apply for any taxable year1 any amount required to be included in gross income for such taxable year shall be so included ratably over the #c-taxable year period beginning with such taxable year4 7ii7 ,special rule ,for purposes of clause 7i71 rules similar to the rules of subparagraph 7,e7 of section #djh;,a7d77#c7 shall apply4 7,e7 ,qualified disaster ,for purposes of this paragraph and paragraph 7#h71 the term qualified disaster means any disaster with respect to which a major disaster has been declared by the ,president under section #dja of the ,robert ,t4 ,stafford ,disaster ,relief and ,emergency ,assistance ,act after ,december #ca1 #bjbj4 7,f7 ,other definitions ,for purposes of this paragraph and paragraph 7#h7-- 7i7 ,qualified disaster area 7,i7 ,in general ,the term qualified disaster area means1 with respect to any qualified disaster1 the area with respect to which the major disaster was declared under the ,robert ,t4 ,stafford ,disaster ,relief and ,emergency ,assistance ,act4 7,,ii7 ,exceptions ,such term shall not include any area which is a qualified disaster area solely by reason of section #cja of the ,taxpayer ,certainty and ,disaster ,tax ,relief ,act of #bjbj4 7ii7 ,incident period ,the term incident period means1 with respect to any qualified disaster1 the period specified by the ,federal ,emergency ,management ,agency as the period during which such disaster occurred4 7iii7 ,applicable date ,the term applicable date means the latest of-- 7,i7 the date of the enactment of this paragraph1 7,,ii7 the first day of the incident period with respect to the qualified disaster1 or 7,,iii7 the date of the disaster declaration with respect to the qualified disaster4 7iv7 ,eligible retirement plan ,the term eligible retirement plan shall have the meaning given such term by section #djb7;c77#h77;,b74 7,g7 ,special rules 7i7 ,exemption of distributions from trustee to trustee transfer and withholding rules ,for purposes of sections #dja7;a77#ca71 #djb7;f71 and #cdje1 qualified disaster recovery distributions shall not be treated as eligible rollover distributions4 7ii7 ,qualified disaster recovery distributions treated as meeting plan distribution requirements ,for purposes this title1 a qualified disaster recovery distribution shall be treated as meeting the requirements of sections #dja7k77#b77;,b77i71 #djc7;b77#g77;,a77ii71 #djc7;b77#aa71 and #deg7;d77#a77;,a74 4 7#c7 ,effective date ,the amendments made by this subsection shall apply to distributions with respect to disasters the incident beginning date 7as defined in section #gb7t77#aa77;,f77i7 of the ,internal ,revenue ,code of #aihf1 as added by this subsection7 for which is after ,december #bg1 #bjbj4 7b7 ,recontributions of withdrawals for home purchases 7#a7 ,individual retirement plans ,paragraph 7#h7 of section #gb7t7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subparagraph3 7,f7 ,recontributions 7i7 ,general rule 7,i7 ,in general ,any individual who received a qualified distribution may1 during the applicable period1 make one or more contributions in an aggregate amount not to exceed the amount of such qualified distribution to an eligible retirement plan 7as defined in section #djb7;c77#h77;,b77 of which such individual is a beneficiary and to which a rollover contribution of such distribution could be made under section #djb7;c71 #djc7;a77#d71 #djc7;b77#h71 or #djh7;d77#c71 as the case may be4 7,,ii7 ,treatment of repayments ,rules similar to the rules of clauses 7ii7 and 7iii7 of paragraph 7#aa77;,c7 shall apply for purposes of this subsection4 7ii7 ,qualified distribution ,for purposes of this subparagraph1 the term qualified distribution means any distribution-- 7,i7 which is a qualified first-time homebuyer distribution1 7,,ii7 which was to be used to purchase or construct a principal residence in a qualified disaster area1 but which was not so used on account of the qualified disaster with respect to such area1 and 7,,iii7 which was received during the period beginning on the date which is #ahj days before the first day of the incident period of such qualified disaster and ending on the date which is #cj days after the last day of such incident period4 7iii7 ,applicable period ,for purposes of this subparagraph1 the term applicable period means1 in the case of a principal residence in a qualified disaster area with respect to any qualified disaster1 the period beginning on the first day of the incident period of such qualified disaster and ending on the date which is #ahj days after the applicable date with respect to such disaster4 4 7#b7 ,qualified plans ,subsection 7c7 of section #djb of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new paragraph3 7#ab7 ,recontributions of withdrawals for home purchases 7,a7 ,general rule 7i7 ,in general ,any individual who received a qualified distribution may1 during the applicable period1 make one or more contributions in an aggregate amount not to exceed the amount of such qualified distribution to an eligible retirement plan 7as defined in paragraph 7#h77;,b77 of which such individual is a beneficiary and to which a rollover contribution of such distribution could be made under subsection 7c7 or section #djc7;a77#d71 #djc7;b77#h71 or #djh7;d77#c71 as the case may be4 7ii7 ,treatment of repayments ,rules similar to the rules of clauses 7ii7 and 7iii7 of section #gb7t77#aa77;,c7 shall apply for purposes of this subsection4 7,b7 ,qualified distribution ,for purposes of this paragraph1 the term qualified distribution means any distribution-- 7i7 described in section #dja7k77#b77;,b77i77,,iv71 #djc7;b77#g77;,a77ii7 7but only to the extent such distribution relates to financial hardship71 or #djc7;b77#aa77;,b71 7ii7 which was to be used to purchase or construct a principal residence in a qualified disaster area1 but which was not so used on account of the qualified disaster with respect to such area1 and 7iii7 which was received during the period beginning on the date which is #ahj days before the first day of the incident period of such qualified disaster and ending on the date which is #cj days after the last day of such incident period4 7,c7 ,definitions ,for purposes of this paragraph-- 7i7 the terms qualified disaster1 qualified disaster area1 and incident period have the meaning given such terms under section #gb7t77#aa71 and 7ii7 the term applicable period has the meaning given such term under section #gb7t77#h77;,f74 4 7#c7 ,effective date ,the amendments made by this subsection shall apply to distributions with respect to disasters the incident beginning date 7as defined in section #gb7t77#aa77;,f77i7 of the ,internal ,revenue ,code of #aihf1 as added by subsection 7a77 for which is after ,december #bg1 #bjbj4 7c7 ,loans from qualified plans 7#a7 ,in general ,subsection 7p7 of section #gb of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new paragraph3 7#f7 ,increase in limit on loans not treated as distributions 7,a7 ,in general ,in the case of any loan from a qualified employer plan to a qualified individual made during the applicable period-- 7i7 clause 7i7 of paragraph 7#b77;,a7 shall be applied by substituting #ajj1jjj for #ej1jjj1 and 7ii7 clause 7ii7 of such paragraph shall be applied by substituting the present value of the nonforfeitable accrued benefit of the employee under the plan for one-half of the present value of the nonforfeitable accrued benefit of the employee under the plan4 7,b7 ,delay of repayment ,in the case of a qualified individual 7with respect to any qualified disaster7 with an outstanding loan on or after the applicable disaster date from a qualified employer plan-- 7i7 if the due date pursuant to subparagraph 7,b7 or 7,c7 of paragraph 7#b7 for any repayment with respect to such loan occurs during the period beginning on the first day of the incident period of such qualified disaster and ending on the date which is #ahj days after the last day of such incident period1 such due date may be delayed for #a year1 7ii7 any subsequent repayments with respect to any such loan may be appropriately adjusted to reflect the delay in the due date under clause 7i7 and any interest accruing during such delay1 and 7iii7 in determining the #e-year period and the term of a loan under subparagraph 7,b7 or 7,c7 of paragraph 7#b71 the period described in clause 7i7 may be disregarded4 7,c7 ,definitions ,for purposes of this paragraph-- 7i7 ,qualified individual ,the term qualified individual means any individual-- 7,i7 whose principal place of abode at any time during the incident period of any qualified disaster is located in the qualified disaster area with respect to such qualified disaster1 and 7,,ii7 who has sustained an economic loss by reason of such qualified disaster4 7ii7 ,applicable period ,the applicable period with respect to any disaster is the period-- 7,i7 beginning on the applicable date with respect to such disaster1 and 7,,ii7 ending on the date that is #ahj days after such applicable date4 7iii7 ,other terms ,for purposes of this paragraph-- 7,i7 the terms applicable date1 qualified disaster1 qualified disaster area1 and incident period have the meaning given such terms under subsection 7t77#aa71 and 7,,ii7 the term applicable period has the meaning given such term under subsection 7t77#h74 4 7#b7 ,hold harmless 7,a7 ,in general ,a person shall not be treated as having violated the provisions of title ,i of the ,employee ,retirement ,income ,security ,act of #aigd solely because-- 7i7 the person made a plan loan to a qualified individual 7as defined in section #gb7p77#f7 of the ,internal ,revenue ,code of #aihf1 as added by paragraph 7#a77 during the applicable period 7as defined in such section #gb7p77#f77 in compliance with section #gb7p77#f7 of such ,code2 or 7ii7 a qualified individual 7as so defined7 delayed making a plan loan repayment in compliance with section #gb7p77#f7 of such ,code4 7,b7 ,prohibited transactions ,a person shall be treated as being exempt from the requirements of section #djf of the ,employee ,retirement ,income ,security ,act of #aigd pursuant to subparagraphs 7,a7 and 7,e7 of section #djh7;b77#a7 of such ,act if the person meets the requirements of clause 7i7 or 7ii7 of subparagraph 7,a74 7#c7 ,effective date ,the amendment made by paragraph 7#a7 shall apply to loans made with respect to disasters the incident beginning date 7as defined in section #gb7t77#aa77;,f77i7 of the ,internal ,revenue ,code of #aihf1 as added by subsection 7a77 for which is after ,december #bg1 #bjbj4 7d7 ,provisions relating to plan amendments 7#a7 ,in general ,if this subsection applies to any amendment to any plan or annuity contract1 such plan or contract shall be treated as being operated in accordance with the terms of the plan during the period described in paragraph 7#b77;,b77i74 7#b7 ,amendments to which subsection applies 7,a7 ,in general ,this subsection shall apply to any amendment to any plan or annuity contract which is made-- 7i7 pursuant to any amendment made by this section1 or pursuant to any regulation issued by the ,secretary or the ,secretary of ,labor under any amendment made by this section1 and 7ii7 on or before the last day of the second calendar year beginning after the date of the enactment of this ,act1 or such later date as the ,secretary may prescribe4 ,in the case of a governmental plan 7as defined in section #dad7;d771 clause 7ii7 shall be applied by substituting the date which is #b years after the date otherwise applied under clause 7ii74 7,b7 ,conditions ,this subsection shall not apply to any amendment unless-- 7i7 during the period-- 7,i7 beginning on the date that the amendments made by this section1 or any regulation described in subparagraph 7,a77i71 take effect 7or in the case of a plan or contract amendment not required by amendments made by this section or such regulation1 the effective date specified by the plan71 and 7,,ii7 ending on the date described in subparagraph 7,a77ii7 7or1 if earlier1 the date the plan or contract amendment is adopted71 the plan or contract is operated as if such plan or contract amendment were in effect2 and 7ii7 such plan or contract amendment applies retroactively for such period4