,,ii  #aag? ,,congress  #a/ ,session    
,s4 #behc  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,augu/ #c1 #bjba,mr4   
,cassidy 7= himself & ,mr4 ,m55dez7     
introduc$ ! foll[+ bill2 :i* 0 read     
twice & ref]r$ to ! ,committee on       
,f9ance  ,a ,,bill  ,to am5d ! ,int]nal 
,rev5ue ,code ( #aihf to provide = rules
 = ! use ( retirem5t funds 9 connection 
) f$]ally decl>$ disa/]s4  #a4 ,special 
rules = use ( retirem5t funds 9         
connection ) qualifi$ f$]ally decl>$    
disa/]s  7a7 ,tax-,favor$ )drawals f    
retirem5t plans  7#a7 ,9 g5]al ,p>agraph
 7#b7 ( section #gb7t7 ( ! ,int]nal     
,rev5ue ,code ( #aihf is am5d$ by add+  
at ! end ! foll[+ new subp>agraph3  7,i7
 ,di/ributions f retirem5t plans 9      
connection ) f$]ally decl>$ disa/]s ,any
 qualifi$ disa/] recov]y di/ribution4  4
  7#b7 ,qualifi$ disa/] recov]y         
di/ribution ,section #gb7t7 ( su* ,code 
is am5d$ by add+ at ! end ! foll[+ new  
p>agraph3  7#aa7 ,qualifi$ disa/]       
recov]y di/ribution ,= purposes (       

p>agraph 7#b77;,i7-- 7,a7 ,9 g5]al      
,except z provid$ 9 subp>agraph 7,b71 ! 
t]m qualifi$ disa/] recov]y di/ribution 
means any di/ribution made-- 7i7 on or  
aft] ! fir/ day ( ! incid5t p]iod ( a   
qualifi$ disa/] & be=e ! date t is #ahj 
days aft] ! applicable date ) respect to
 su* disa/]1 &  7ii7 to an individual ^:
 pr9cipal place ( abode at any "t dur+ !
 incid5t p]iod ( su* qualifi$ disa/] is 
locat$ 9 ! qualifi$ disa/] area )       
respect to su* qualifi$ disa/] & :o has 
su/a9$ an economic loss by reason ( su* 
qualifi$ disa/]4  7,b7 ,aggregate doll> 
limitation  7i7 ,9 g5]al ,= purposes (  
?is subsection1 ! aggregate am\nt (     
di/ributions receiv$ by an individual   
:i* may be treat$ z qualifi$ disa/]     
recov]y di/ributions ) respect to any   
qualifi$ disa/] %all n exce$ ! excess   
7if any7 (-- 7,i7 #ajj1jjj1 ov]  7,,ii7 
! sum ( aggregate am\nts treat$ z       
qualifi$ disa/] recov]y di/ributions )  
respect to su* qualifi$ disa/] receiv$  
by su* individual4  7ii7 ,treatm5t (    

plan di/ributions ,if a di/ribution to  
an individual w\ld 7)\t reg>d to clause 
7i77 be a qualifi$ disa/] recov]y       
di/ribution1 a plan %all n be treat$ z  
violat+ any requirem5t ( ?is title m]ely
 because ! plan treats su* di/ribution z
 a qualifi$ disa/] recov]y di/ribution1 
unless ! aggregate am\nt ( su*          
di/ributions f all plans ma9ta9$ by !   
employ] 7& any memb] ( any controll$    
gr\p :i* includes ! employ]7 to su*     
individual exce$s #ajj1jjj ) respect to 
! same qualifi$ disa/]4  7iii7          
,controll$ gr\p ,= purposes ( clause    
7ii71 ! t]m controll$ gr\p means any    
gr\p treat$ z a s+le employ] "u         
subsection 7b71 7c71 7m71 or 7o7 (      
section #dad4  7iv7 ,special rule =     
individuals affect$ by m ?an "o disa/]  
,! limitation ( clause 7i7 %all be      
appli$ sep>ately ) respect to           
di/ributions made ) respect to ea*      
qualifi$ disa/]4  7,c7 ,am\nt di/ribut$ 
may be repaid  7i7 ,9 g5]al ,any        
individual :o receives a qualifi$ disa/]

 recov]y di/ribution may1 at any "t dur+
 ! #c-ye> p]iod beg9n+ on ! day aft] !  
date on :i* su* di/ribution 0 receiv$1  
make "o or m contributions 9 an         
aggregate am\nt n to exce$ ! am\nt ( su*
 di/ribution to an eligible retirem5t   
plan ( :i* su* individual is a b5efici>y
 & to :i* a rollov] contribution ( su*  
di/ribution c\ld be made "u section     
#djb7;c71 #djc7;a77#d71 #djc7;b77#h71   
#djh7;d77#c71 or #deg7;e77#af71 z ! case
 may be4  7ii7 ,treatm5t ( repaym5ts (  
di/ributions f eligible retirem5t plans 
o!r ?an iras ,= purposes ( ?is title1 if
 a contribution is made pursuant to     
clause 7i7 ) respect to a qualifi$      
disa/] recov]y di/ribution f a plan o!r 
?an an individual retirem5t plan1 !n !  
taxpay] %all1 to ! ext5t ( ! am\nt ( !  
contribution1 be treat$ z hav+ receiv$ !
 qualifi$ disa/] recov]y di/ribution 9  
an eligible rollov] di/ribution 7z def9$
 9 section #djb7;c77#d77 & z hav+       
transf]r$ ! am\nt to ! eligible         
retirem5t plan 9 a direct tru/ee to     

tru/ee transf] )9 #fj days ( !          
di/ribution4  7iii7 ,treatm5t (         
repaym5ts = di/ributions f iras ,=      
purposes ( ?is title1 if a contribution 
is made pursuant to clause 7i7 ) respect
 to a qualifi$ disa/] recov]y           
di/ribution f an individual retirem5t   
plan1 !n1 to ! ext5t ( ! am\nt ( !      
contribution1 ! qualifi$ disa/] recov]y 
di/ribution %all be treat$ z a          
di/ribution describ$ 9 section          
#djh7;d77#c7 & z hav+ be5 transf]r$ to !
 eligible retirem5t plan 9 a direct     
tru/ee to tru/ee transf] )9 #fj days ( !
 di/ribution4  7,d7 ,income inclusion   
spread ov] #c-ye> p]iod  7i7 ,9 g5]al ,9
 ! case ( any qualifi$ disa/] recov]y   
di/ribution1 unless ! taxpay] elects n  
to h ?is subp>agraph apply = any taxable
 ye>1 any am\nt requir$ to be includ$ 9 
gross income = su* taxable ye> %all be s
 includ$ ratably ov] ! #c-taxable ye>   
p]iod beg9n+ ) su* taxable ye>4  7ii7   
,special rule ,= purposes ( clause 7i71 
rules simil> to ! rules ( subp>agraph   

7,e7 ( section #djh;,a7d77#c7 %all      
apply4  7,e7 ,qualifi$ disa/] ,=        
purposes ( ?is p>agraph & p>agraph 7#h71
 ! t]m qualifi$ disa/] means any disa/] 
) respect to :i* a major disa/] has be5 
decl>$ by ! ,presid5t "u section #dja ( 
! ,rob]t ,t4 ,/af=d ,disa/] ,relief &   
,em]g5cy ,assi/ance ,act aft] ,decemb]  
#ca1 #bjbj4  7,f7 ,o!r def9itions ,=    
purposes ( ?is p>agraph & p>agraph      
7#h7-- 7i7 ,qualifi$ disa/] area  7,i7  
,9 g5]al ,! t]m qualifi$ disa/] area    
means1 ) respect to any qualifi$ disa/]1
 ! area ) respect to :i* ! major disa/] 
0 decl>$ "u ! ,rob]t ,t4 ,/af=d ,disa/] 
,relief & ,em]g5cy ,assi/ance ,act4     
7,,ii7 ,exceptions ,su* t]m %all n      
include any area :i* is a qualifi$      
disa/] area solely by reason ( section  
#cja ( ! ,taxpay] ,c]ta9ty & ,disa/]    
,tax ,relief ,act ( #bjbj4  7ii7        
,incid5t p]iod ,! t]m incid5t p]iod     
means1 ) respect to any qualifi$ disa/]1
 ! p]iod specifi$ by ! ,f$]al ,em]g5cy  
,managem5t ,ag5cy z ! p]iod dur+ :i* su*

 disa/] occurr$4  7iii7 ,applicable date
 ,! t]m applicable date means ! late/   
(-- 7,i7 ! date ( ! enactm5t ( ?is      
p>agraph1  7,,ii7 ! fir/ day ( ! incid5t
 p]iod ) respect to ! qualifi$ disa/]1  
or  7,,iii7 ! date ( ! disa/] decl>ation
 ) respect to ! qualifi$ disa/]4  7iv7  
,eligible retirem5t plan ,! t]m eligible
 retirem5t plan %all h ! mean+ giv5 su* 
t]m by section #djb7;c77#h77;,b74  7,g7 
,special rules  7i7 ,exemption (        
di/ributions f tru/ee to tru/ee transf] 
& )hold+ rules ,= purposes ( sections   
#dja7;a77#ca71 #djb7;f71 & #cdje1       
qualifi$ disa/] recov]y di/ributions    
%all n be treat$ z eligible rollov]     
di/ributions4  7ii7 ,qualifi$ disa/]    
recov]y di/ributions treat$ z meet+ plan
 di/ribution requirem5ts ,= purposes ?is
 title1 a qualifi$ disa/] recov]y       
di/ribution %all be treat$ z meet+ !    
requirem5ts ( sections                  
#dja7k77#b77;,b77i71                    
#djc7;b77#g77;,a77ii71 #djc7;b77#aa71 & 
#deg7;d77#a77;,a74  4  7#c7 ,effective  

date ,! am5dm5ts made by ?is subsection 
%all apply to di/ributions ) respect to 
disa/]s ! incid5t beg9n+ date 7z def9$ 9
 section #gb7t77#aa77;,f77i7 ( !        
,int]nal ,rev5ue ,code ( #aihf1 z add$  
by ?is subsection7 = :i* is aft]        
,decemb] #bg1 #bjbj4  7b7               
,recontributions ( )drawals = home      
pur*ases  7#a7 ,individual retirem5t    
plans ,p>agraph 7#h7 ( section #gb7t7 ( 
! ,int]nal ,rev5ue ,code ( #aihf is     
am5d$ by add+ at ! end ! foll[+ new     
subp>agraph3  7,f7 ,recontributions  7i7
 ,g5]al rule  7,i7 ,9 g5]al ,any        
individual :o receiv$ a qualifi$        
di/ribution may1 dur+ ! applicable      
p]iod1 make "o or m contributions 9 an  
aggregate am\nt n to exce$ ! am\nt ( su*
 qualifi$ di/ribution to an eligible    
retirem5t plan 7z def9$ 9 section       
#djb7;c77#h77;,b77 ( :i* su* individual 
is a b5efici>y & to :i* a rollov]       
contribution ( su* di/ribution c\ld be  
made "u section #djb7;c71 #djc7;a77#d71 
#djc7;b77#h71 or #djh7;d77#c71 z ! case 

may be4  7,,ii7 ,treatm5t ( repaym5ts   
,rules simil> to ! rules ( clauses 7ii7 
& 7iii7 ( p>agraph 7#aa77;,c7 %all apply
 = purposes ( ?is subsection4  7ii7     
,qualifi$ di/ribution ,= purposes ( ?is 
subp>agraph1 ! t]m qualifi$ di/ribution 
means any di/ribution-- 7,i7 :i* is a   
qualifi$ fir/-"t homebuy] di/ribution1  
7,,ii7 :i* 0 to be us$ to pur*ase or    
con/ruct a pr9cipal resid5ce 9 a        
qualifi$ disa/] area1 b :i* 0 n s us$ on
 acc\nt ( ! qualifi$ disa/] ) respect to
 su* area1 &  7,,iii7 :i* 0 receiv$ dur+
 ! p]iod beg9n+ on ! date :i* is #ahj   
days be=e ! fir/ day ( ! incid5t p]iod (
 su* qualifi$ disa/] & end+ on ! date   
:i* is #cj days aft] ! la/ day ( su*    
incid5t p]iod4  7iii7 ,applicable p]iod 
,= purposes ( ?is subp>agraph1 ! t]m    
applicable p]iod means1 9 ! case ( a    
pr9cipal resid5ce 9 a qualifi$ disa/]   
area ) respect to any qualifi$ disa/]1 !
 p]iod beg9n+ on ! fir/ day ( ! incid5t 
p]iod ( su* qualifi$ disa/] & end+ on ! 
date :i* is #ahj days aft] ! applicable 

date ) respect to su* disa/]4  4  7#b7  
,qualifi$ plans ,subsection 7c7 (       
section #djb ( ! ,int]nal ,rev5ue ,code 
( #aihf is am5d$ by add+ at ! end !     
foll[+ new p>agraph3  7#ab7             
,recontributions ( )drawals = home      
pur*ases  7,a7 ,g5]al rule  7i7 ,9 g5]al
 ,any individual :o receiv$ a qualifi$  
di/ribution may1 dur+ ! applicable      
p]iod1 make "o or m contributions 9 an  
aggregate am\nt n to exce$ ! am\nt ( su*
 qualifi$ di/ribution to an eligible    
retirem5t plan 7z def9$ 9 p>agraph      
7#h77;,b77 ( :i* su* individual is a    
b5efici>y & to :i* a rollov]            
contribution ( su* di/ribution c\ld be  
made "u subsection 7c7 or section       
#djc7;a77#d71 #djc7;b77#h71 or          
#djh7;d77#c71 z ! case may be4  7ii7    
,treatm5t ( repaym5ts ,rules simil> to !
 rules ( clauses 7ii7 & 7iii7 ( section 
#gb7t77#aa77;,c7 %all apply = purposes (
 ?is subsection4  7,b7 ,qualifi$        
di/ribution ,= purposes ( ?is p>agraph1 
! t]m qualifi$ di/ribution means any    

di/ribution-- 7i7 describ$ 9 section    
#dja7k77#b77;,b77i77,,iv71              
#djc7;b77#g77;,a77ii7 7b only to ! ext5t
 su* di/ribution relates to f9ancial    
h>d%ip71 or #djc7;b77#aa77;,b71  7ii7   
:i* 0 to be us$ to pur*ase or con/ruct a
 pr9cipal resid5ce 9 a qualifi$ disa/]  
area1 b :i* 0 n s us$ on acc\nt ( !     
qualifi$ disa/] ) respect to su* area1 &
  7iii7 :i* 0 receiv$ dur+ ! p]iod      
beg9n+ on ! date :i* is #ahj days be=e !
 fir/ day ( ! incid5t p]iod ( su*       
qualifi$ disa/] & end+ on ! date :i* is 
#cj days aft] ! la/ day ( su* incid5t   
p]iod4  7,c7 ,def9itions ,= purposes (  
?is p>agraph-- 7i7 ! t]ms qualifi$      
disa/]1 qualifi$ disa/] area1 & incid5t 
p]iod h ! mean+ giv5 su* t]ms "u section
 #gb7t77#aa71 &  7ii7 ! t]m applicable  
p]iod has ! mean+ giv5 su* t]m "u       
section #gb7t77#h77;,f74  4  7#c7       
,effective date ,! am5dm5ts made by ?is 
subsection %all apply to di/ributions ) 
respect to disa/]s ! incid5t beg9n+ date
 7z def9$ 9 section #gb7t77#aa77;,f77i7 

( ! ,int]nal ,rev5ue ,code ( #aihf1 z   
add$ by subsection 7a77 = :i* is aft]   
,decemb] #bg1 #bjbj4  7c7 ,loans f      
qualifi$ plans  7#a7 ,9 g5]al           
,subsection 7p7 ( section #gb ( !       
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by add+ at ! end ! foll[+ new p>agraph3 
7#f7 ,increase 9 limit on loans n treat$
 z di/ributions  7,a7 ,9 g5]al ,9 ! case
 ( any loan f a qualifi$ employ] plan to
 a qualifi$ individual made dur+ !      
applicable p]iod-- 7i7 clause 7i7 (     
p>agraph 7#b77;,a7 %all be appli$ by    
sub/itut+ #ajj1jjj = #ej1jjj1 &  7ii7   
clause 7ii7 ( su* p>agraph %all be      
appli$ by sub/itut+ ! pres5t value ( !  
non=feitable accru$ b5efit ( ! employee 
"u ! plan = "o-half ( ! pres5t value ( !
 non=feitable accru$ b5efit ( ! employee
 "u ! plan4  7,b7 ,delay ( repaym5t ,9 !
 case ( a qualifi$ individual 7) respect
 to any qualifi$ disa/]7 ) an out/&+    
loan on or aft] ! applicable disa/] date
 f a qualifi$ employ] plan-- 7i7 if !   
due date pursuant to subp>agraph 7,b7 or

 7,c7 ( p>agraph 7#b7 = any repaym5t )  
respect to su* loan occurs dur+ ! p]iod 
beg9n+ on ! fir/ day ( ! incid5t p]iod (
 su* qualifi$ disa/] & end+ on ! date   
:i* is #ahj days aft] ! la/ day ( su*   
incid5t p]iod1 su* due date may be      
delay$ = #a ye>1  7ii7 any subsequ5t    
repaym5ts ) respect to any su* loan may 
be appropriately adju/$ to reflect !    
delay 9 ! due date "u clause 7i7 & any  
int]e/ accru+ dur+ su* delay1 &  7iii7 9
 det]m9+ ! #e-ye> p]iod & ! t]m ( a loan
 "u subp>agraph 7,b7 or 7,c7 ( p>agraph 
7#b71 ! p]iod describ$ 9 clause 7i7 may 
be disreg>d$4  7,c7 ,def9itions ,=      
purposes ( ?is p>agraph-- 7i7 ,qualifi$ 
individual ,! t]m qualifi$ individual   
means any individual-- 7,i7 ^: pr9cipal 
place ( abode at any "t dur+ ! incid5t  
p]iod ( any qualifi$ disa/] is locat$ 9 
! qualifi$ disa/] area ) respect to su* 
qualifi$ disa/]1 &  7,,ii7 :o has su/a9$
 an economic loss by reason ( su*       
qualifi$ disa/]4  7ii7 ,applicable p]iod
 ,! applicable p]iod ) respect to any   

disa/] is ! p]iod-- 7,i7 beg9n+ on !    
applicable date ) respect to su* disa/]1
 &  7,,ii7 end+ on ! date t is #ahj days
 aft] su* applicable date4  7iii7 ,o!r  
t]ms ,= purposes ( ?is p>agraph-- 7,i7 !
 t]ms applicable date1 qualifi$ disa/]1 
qualifi$ disa/] area1 & incid5t p]iod h 
! mean+ giv5 su* t]ms "u subsection     
7t77#aa71 &  7,,ii7 ! t]m applicable    
p]iod has ! mean+ giv5 su* t]m "u       
subsection 7t77#h74  4  7#b7 ,hold      
h>mless  7,a7 ,9 g5]al ,a p]son %all n  
be treat$ z hav+ violat$ ! provisions ( 
title ,i ( ! ,employee ,retirem5t       
,income ,security ,act ( #aigd solely   
because-- 7i7 ! p]son made a plan loan  
to a qualifi$ individual 7z def9$ 9     
section #gb7p77#f7 ( ! ,int]nal ,rev5ue 
,code ( #aihf1 z add$ by p>agraph 7#a77 
dur+ ! applicable p]iod 7z def9$ 9 su*  
section #gb7p77#f77 9 compliance )      
section #gb7p77#f7 ( su* ,code2 or  7ii7
 a qualifi$ individual 7z s def9$7      
delay$ mak+ a plan loan repaym5t 9      
compliance ) section #gb7p77#f7 ( su*   

,code4  7,b7 ,prohibit$ transactions ,a 
p]son %all be treat$ z be+ exempt f !   
requirem5ts ( section #djf ( ! ,employee
 ,retirem5t ,income ,security ,act (    
#aigd pursuant to subp>agraphs 7,a7 &   
7,e7 ( section #djh7;b77#a7 ( su* ,act  
if ! p]son meets ! requirem5ts ( clause 
7i7 or 7ii7 ( subp>agraph 7,a74  7#c7   
,effective date ,! am5dm5t made by      
p>agraph 7#a7 %all apply to loans made )
 respect to disa/]s ! incid5t beg9n+    
date 7z def9$ 9 section                 
#gb7t77#aa77;,f77i7 ( ! ,int]nal ,rev5ue
 ,code ( #aihf1 z add$ by subsection    
7a77 = :i* is aft] ,decemb] #bg1 #bjbj4 
7d7 ,provisions relat+ to plan am5dm5ts 
7#a7 ,9 g5]al ,if ?is subsection applies
 to any am5dm5t to any plan or annuity  
contract1 su* plan or contract %all be  
treat$ z be+ op]at$ 9 accordance ) !    
t]ms ( ! plan dur+ ! p]iod describ$ 9   
p>agraph 7#b77;,b77i74  7#b7 ,am5dm5ts  
to :i* subsection applies  7,a7 ,9 g5]al
 ,?is subsection %all apply to any      
am5dm5t to any plan or annuity contract 

:i* is made-- 7i7 pursuant to any       
am5dm5t made by ?is section1 or pursuant
 to any regulation issu$ by ! ,secret>y 
or ! ,secret>y ( ,labor "u any am5dm5t  
made by ?is section1 &  7ii7 on or be=e 
! la/ day ( ! second cal5d> ye> beg9n+  
aft] ! date ( ! enactm5t ( ?is ,act1 or 
su* lat] date z ! ,secret>y may         
prescribe4  ,9 ! case ( a gov]nm5tal    
plan 7z def9$ 9 section #dad7;d771      
clause 7ii7 %all be appli$ by sub/itut+ 
! date :i* is #b ye>s aft] ! date       
o!rwise appli$ "u clause 7ii74  7,b7    
,conditions ,?is subsection %all n apply
 to any am5dm5t unless-- 7i7 dur+ !     
p]iod-- 7,i7 beg9n+ on ! date t !       
am5dm5ts made by ?is section1 or any    
regulation describ$ 9 subp>agraph       
7,a77i71 take effect 7or 9 ! case ( a   
plan or contract am5dm5t n requir$ by   
am5dm5ts made by ?is section or su*     
regulation1 ! effective date specifi$ by
 ! plan71 &  7,,ii7 end+ on ! date      
describ$ 9 subp>agraph 7,a77ii7 7or1 if 
e>li]1 ! date ! plan or contract am5dm5t

 is adopt$71  ! plan or contract is     
op]at$ z if su* plan or contract am5dm5t
 7 9 effect2 &  7ii7 su* plan or        
contract am5dm5t applies retroactively =
 su* p]iod4