,,ii  #aahth ,,congress  #ast ,session  
,s4 #cjdc  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,october #af1  
#bjbc,ms4 ,hirono 7for herself and ,mr4 
,schatz7 introduced the following bill2 
which was read twice and referred to the
 ,committee on ,finance  ,a ,,bill  ,to 
provide special rules for retirement    
accounts and personal casualty losses   
with respect to certain major disasters 
occurring in #bjbc4  #a4 ,short title   
,this ,act may be cited as the ,natural 
,disaster ,tax ,relief ,act of #bjbc4   
#b4 ,definitions ,for purposes of this  
,act-- 7#a7 ,qualified disaster area    
,the term qualified disaster area means 
any area with respect to which a major  
disaster was declared1 during calendar  
year #bjbc1 by the ,president under     
section #dja of the ,robert ,t4         
,stafford ,disaster ,relief and         
,emergency ,assistance ,act if the      
incident period of the disaster with    
respect to which such declaration is    
made begins during calendar year #bjbc4 

7#b7 ,qualified disaster ,the term      
qualified disaster means1 with respect  
to any qualified disaster area1 the     
disaster by reason of which a major     
disaster was declared with respect to   
such area4  7#c7 ,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 occurred 7except   
that for purposes of this ,act such     
period shall not be treated as ending   
after ,january #ca1 #bjbd74  #c4        
,special disaster-related rules for use 
of retirement funds  7a7 ,tax-,favored  
withdrawals from retirement plans  7#a7 
,in general ,section #gb7t7 of the      
,internal ,revenue ,code of #aihf shall 
not apply to any qualified disaster     
distribution4  7#b7 ,aggregate dollar   
limitation  7,a7 ,in general ,for       
purposes of this subsection1 the        
aggregate amount of distributions       
received by an individual which may be  

treated as qualified disaster           
distributions for any taxable year shall
 not exceed the excess 7if any7 of-- 7i7
 #ajj1jjj1 over  7ii7 the aggregate     
amounts treated as qualified disaster   
distributions received by such          
individual for all prior taxable years4 
7,b7 ,treatment of plan distributions   
,if a distribution to an individual     
would 7without regard to subparagraph   
7,a77 be a qualified disaster           
distribution1 a plan shall not be       
treated as violating any requirement of 
the ,internal ,revenue ,code of #aihf   
merely because the plan treats such     
distribution as a qualified disaster    
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 #ajj1jjj4  7,c7      
,controlled group ,for purposes of      
subparagraph 7,b71 the term controlled  
group means any group treated as a      

single employer under subsection 7b71   
7c71 7m71 or 7o7 of section #dad of the 
,internal ,revenue ,code of #aihf4  7,d7
 ,special rule for individuals affected 
by more than one disaster ,the          
limitation of subparagraph 7,a7 shall be
 applied separately with respect to     
distributions made with respect to each 
qualified disaster4  7#c7 ,amount       
distributed may be repaid  7,a7 ,in     
general ,any individual who receives a  
qualified disaster distribution may1 at 
any time during the #c-year period      
beginning on the day after the date on  
which such distribution was received1   
make #a 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 of the  
,internal ,revenue ,code of #aihf1 as   

the case may be4  7,b7 ,treatment of    
repayments of distributions from        
eligible retirement plans other than    
,i,r,as ,for purposes of the ,internal  
,revenue ,code of #aihf1 if a           
contribution is made pursuant to        
subparagraph 7,a7 with respect to a     
qualified disaster distribution from an 
eligible retirement 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 distribution in an eligible    
rollover distribution 7as defined in    
section #djb7;c77#d7 of such ,code7 and 
as having transferred the amount to the 
eligible retirement plan in a direct    
trustee to trustee transfer within #fj  
days of the distribution4  7,c7         
,treatment of repayments of             
distributions from ,i,r,as ,for purposes
 of the ,internal ,revenue ,code of     
#aihf1 if a contribution is made        
pursuant to subparagraph 7,a7 with      

respect to a qualified disaster         
distribution from an individual         
retirement plan 7as defined by section  
#ggja7;a77#cg7 of such ,code71 then1 to 
the extent of the amount of the         
contribution1 the qualified disaster    
distribution shall be treated as a      
distribution described in section       
#djh7;d77#c7 of such ,code 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 ,definitions ,for   
purposes of this subsection-- 7,a7      
,qualified disaster distribution ,except
 as provided in paragraph 7#b71 the term
 qualified disaster distribution means  
any distribution from an eligible       
retirement plan made-- 7i7 on or after  
the first day of the incident period of 
a qualified disaster and before ,july   
#a1 #bjbd1 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 ,eligible
 retirement plan ,the term eligible     
retirement plan shall have the meaning  
given such term by section              
#djb7;c77#h77;,b7 of the ,internal      
,revenue ,code of #aihf4  7#e7 ,income  
inclusion spread over #c-year period    
7,a7 ,in general ,in the case of any    
qualified disaster distribution1 unless 
the taxpayer elects not to have this    
paragraph 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  7,b7 ,special rule  
,for purposes of subparagraph 7,a71     
rules similar to the rules of           
subparagraph 7,e7 of section            
#djh;,a7d77#c7 of the ,internal ,revenue
 ,code of #aihf shall apply4  7#f7      
,special rules  7,a7 ,exemption of      

distributions from trustee to trustee   
transfer and withholding rules ,for     
purposes of sections #dja7;a77#ca71     
#djb7;f71 and #cdje of the ,internal    
,revenue ,code of #aihf1 qualified      
disaster distributions shall not be     
treated as eligible rollover            
distributions4  7,b7 ,qualified disaster
 distributions treated as meeting plan  
distribution requirements ,for purposes 
of the ,internal ,revenue ,code of      
#aihf1 a qualified disaster distribution
 shall be treated as meeting the        
requirements of sections                
#dja7k77#b77;,b77i71                    
#djc7;b77#g77;,a77i71 #djc7;b77#aa71 and
 #deg7;d77#a77;,a7 of such ,code and    
section #hdcc7;h77#a7 of title #e1      
,united ,states ,code1 and1 in the case 
of a money purchase pension plan1 a     
qualified disaster distribution which is
 an in-service withdrawal shall be      
treated as meeting the distribution     
rules of section #dja7;a7 of such ,code4
  7b7 ,recontributions of withdrawals   

for home purchases  7#a7                
,recontributions  7,a7 ,in general ,any 
individual who received a qualified     
distribution may1 during the applicable 
period1 make #a 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;,b7 of the    
,internal ,revenue ,code of #aihf7 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 of such  
,code1 as the case may be4  7,b7        
,treatment of repayments ,rules similar 
to the rules of subparagraphs 7,b7 and  
7,c7 of subsection 7a77#c7 shall apply  
for purposes of this subsection4  7#b7  
,qualified distribution ,for purposes of
 this subsection1 the term qualified    
distribution means any distribution--   
7,a7 described in section               
#dja7k77#b77;,b77i77,,iv71              

#djc7;b77#g77;,a77i77,v71               
#djc7;b77#aa77;,b71 or #gb7t77#b77;,f71 
of the ,internal ,revenue ,code of      
#aihf1  7,b7 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,c7 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 ,applicable      
period ,for purposes of this subsection1
 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 ,june #cj1 #bjbd4
  7c7 ,loans from qualified plans  7#a7 
,increase in limit on loans not treated 

as distributions ,in the case of any    
loan from a qualified employer plan 7as 
defined under section #gb7p77#d7 of the 
,internal ,revenue ,code of #aihf7 to a 
qualified individual made during the    
period beginning on the date of the     
enactment of this ,act and ending on    
,june #cj1 #bjbd-- 7,a7 clause 7i7 of   
section #gb7p77#b77;,a7 of such ,code   
shall be applied by substituting        
#ajj1jjj for #ej1jjj1 and  7,b7 clause  
7ii7 of such section 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 7on or after the   
first day of the incident period of such
 qualified disaster7 from a qualified   
employer plan 7as defined in section    
#gb7p77#d7 of the ,internal ,revenue    

,code of #aihf7-- 7,a7 if the due date  
pursuant to subparagraph 7,b7 or 7,c7 of
 section #gb7p77#b7 of such ,code 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 shall be delayed for #a year   
7or1 if later1 until ,june #cj1 #bjbd71 
7,b7 any subsequent repayments with     
respect to any such loan shall be       
appropriately adjusted to reflect the   
delay in the due date under subparagraph
 7,a7 and any interest accruing during  
such delay1 and  7,c7 in determining the
 #e-year period and the term of a loan  
under subparagraph 7,b7 or 7,c7 of      
section #gb7p77#b7 of such ,code1 the   
period described in subparagraph 7,a7 of
 this paragraph shall be disregarded4   
7#c7 ,qualified individual ,for purposes
 of this subsection1 the term qualified 
individual means any individual-- 7,a7  

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,b7 who  
has sustained an economic loss by reason
 of such qualified disaster4  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 provision of this section1 or      
pursuant to any regulation issued by the
 ,secretary or the ,secretary of ,labor 
under any provision of this section1 and
  7ii7 on or before the last day of the 
first plan year beginning on or after   

,january #a1 #bjbd1 or such later date  
as the ,secretary may prescribe4  ,in   
the case of a governmental plan 7as     
defined in section #dad7;d7 of the      
,internal ,revenue ,code of #aihf71     
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
 this section or the regulation         
described in subparagraph 7,a77i7 takes 
effect 7or in the case of a plan or     
contract amendment not required 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 effect1 and  
7ii7 such plan or contract amendment    

applies retroactively for such period4  
#d4 ,special rules for qualified        
disaster-related personal casualty      
losses  7a7 ,in general ,if an          
individual has a net disaster loss for  
any taxable year-- 7#a7 the amount      
determined under section                
#afe7;h77#b77;,a77ii7 of the ,internal  
,revenue ,code of #aihf shall be equal  
to the sum of-- 7,a7 such net disaster  
loss1 and  7,b7 so much of the excess   
referred to in the matter preceding     
clause 7i7 of section #afe7;h77#b77;,a7 
of such ,code 7reduced by the amount in 
clause 7i7 of this subparagraph7 as     
exceeds #aj percent of the adjusted     
gross income of the individual1  7#b7 in
 the case of qualified disaster-related 
personal casualty losses1 section       
#afe7;h77#a7 of such ,code shall be     
applied to by substituting #ejj for #ejj
 7#ajj for taxable years beginning after
 ,december #ca1 #bjji71  7#c7 the       
standard deduction determined under     
section #fc7;c7 of such ,code shall be  

increased by the net disaster loss1 and 
7#d7 section #ef7;b77#a77;,e7 of such   
,code shall not apply to so much of the 
standard deduction as is attributable to
 the increase under subparagraph 7,c7 of
 this paragraph4  7b7 ,net disaster loss
 ,for purposes of this subsection1 the  
term net disaster loss means the excess 
of qualified disaster-related personal  
casualty losses over personal casualty  
gains 7as defined in section            
#afe7;h77#c77;,a7 of the ,internal      
,revenue ,code of #aihf74  7c7          
,qualified disaster-,related personal   
casualty losses ,for purposes of this   
subsection1 the term qualified          
disaster-related personal casualty      
losses means losses described in section
 #afe7;c77#c7 of the ,internal ,revenue 
,code of #aihf which arise in a         
qualified disaster area on or after the 
first day of the incident period of the 
qualified disaster to which such area   
relates1 and which are attributable to  
such qualified disaster4