,,ii  #aah? ,,congress  #a/ ,session    
,s4 #cjdc  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,octob] #af1 #bjbc,ms4 
,hirono 7= h]self & ,mr4 ,s*atz7        
introduc$ ! foll[+ bill2 :i* 0 read     
twice & ref]r$ to ! ,committee on       
,f9ance  ,a ,,bill  ,to provide special 
rules = retirem5t acc\nts & p]sonal     
casualty losses ) respect to c]ta9 major
 disa/]s occurr+ 9 #bjbc4  #a4 ,%ort    
title ,?is ,act may be cit$ z ! ,natural
 ,disa/] ,tax ,relief ,act ( #bjbc4  #b4
 ,def9itions ,= purposes ( ?is ,act--   
7#a7 ,qualifi$ disa/] area ,! t]m       
qualifi$ disa/] area means any area )   
respect to :i* a major disa/] 0 decl>$1 
dur+ cal5d> ye> #bjbc1 by ! ,presid5t "u
 section #dja ( ! ,rob]t ,t4 ,/af=d     
,disa/] ,relief & ,em]g5cy ,assi/ance   
,act if ! incid5t p]iod ( ! disa/] )    
respect to :i* su* decl>ation is made   
beg9s dur+ cal5d> ye> #bjbc4  7#b7      
,qualifi$ disa/] ,! t]m qualifi$ disa/] 
means1 ) respect to any qualifi$ disa/] 
area1 ! disa/] by reason ( :i* a major  

disa/] 0 decl>$ ) respect to su* area4  
7#c7 ,incid5t p]iod ,! t]m incid5t p]iod
 means1 ) respect to any qualifi$       
disa/]1 ! p]iod specifi$ by ! ,f$]al    
,em]g5cy ,managem5t ,ag5cy z ! p]iod    
dur+ :i* su* disa/] occurr$ 7except t = 
purposes ( ?is ,act su* p]iod %all n be 
treat$ z end+ aft] ,janu>y #ca1 #bjbd74 
#c4 ,special disa/]-relat$ rules = use (
 retirem5t funds  7a7 ,tax-,favor$      
)drawals f retirem5t plans  7#a7 ,9     
g5]al ,section #gb7t7 ( ! ,int]nal      
,rev5ue ,code ( #aihf %all n apply to   
any qualifi$ disa/] di/ribution4  7#b7  
,aggregate doll> limitation  7,a7 ,9    
g5]al ,= purposes ( ?is subsection1 !   
aggregate am\nt ( di/ributions receiv$  
by an individual :i* may be treat$ z    
qualifi$ disa/] di/ributions = any      
taxable ye> %all n exce$ ! excess 7if   
any7 (-- 7i7 #ajj1jjj1 ov]  7ii7 !      
aggregate am\nts treat$ z qualifi$      
disa/] di/ributions receiv$ by su*      
individual = all prior taxable ye>s4    
7,b7 ,treatm5t ( plan di/ributions ,if a

 di/ribution to an individual w\ld 7)\t 
reg>d to subp>agraph 7,a77 be a qualifi$
 disa/] di/ribution1 a plan %all n be   
treat$ z violat+ any requirem5t ( !     
,int]nal ,rev5ue ,code ( #aihf m]ely    
because ! plan treats su* di/ribution z 
a qualifi$ disa/] 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$s       
#ajj1jjj4  7,c7 ,controll$ gr\p ,=      
purposes ( subp>agraph 7,b71 ! t]m      
controll$ gr\p means any gr\p treat$ z a
 s+le employ] "u subsection 7b71 7c71   
7m71 or 7o7 ( section #dad ( ! ,int]nal 
,rev5ue ,code ( #aihf4  7,d7 ,special   
rule = individuals affect$ by m ?an "o  
disa/] ,! limitation ( subp>agraph 7,a7 
%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  7,a7 ,9 g5]al ,any       
individual :o receives a qualifi$ disa/]
 di/ribution may1 at any "t dur+ !      

#c-ye> p]iod beg9n+ on ! day aft] ! date
 on :i* su* di/ribution 0 receiv$1 make 
#a or m contributions 9 an aggregate    
am\nt n to exce$ ! 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 ( !     
,int]nal ,rev5ue ,code ( #aihf1 z ! case
 may be4  7,b7 ,treatm5t ( repaym5ts (  
di/ributions f eligible retirem5t plans 
o!r ?an ,i,r,as ,= purposes ( ! ,int]nal
 ,rev5ue ,code ( #aihf1 if a            
contribution is made pursuant to        
subp>agraph 7,a7 ) respect to a qualifi$
 disa/] di/ribution f an eligible       
retirem5t plan o!r ?an an individual    
retirem5t plan1 !n ! taxpay] %all1 to ! 
ext5t ( ! am\nt ( ! contribution1 be    
treat$ z hav+ receiv$ ! qualifi$ disa/] 
di/ribution 9 an eligible rollov]       
di/ribution 7z def9$ 9 section          
#djb7;c77#d7 ( su* ,code7 & z hav+      

transf]r$ ! am\nt to ! eligible         
retirem5t plan 9 a direct tru/ee to     
tru/ee transf] )9 #fj days ( !          
di/ribution4  7,c7 ,treatm5t ( repaym5ts
 ( di/ributions f ,i,r,as ,= purposes ( 
! ,int]nal ,rev5ue ,code ( #aihf1 if a  
contribution is made pursuant to        
subp>agraph 7,a7 ) respect to a qualifi$
 disa/] di/ribution f an individual     
retirem5t plan 7z def9$ by section      
#ggja7;a77#cg7 ( su* ,code71 !n1 to !   
ext5t ( ! am\nt ( ! contribution1 !     
qualifi$ disa/] di/ribution %all be     
treat$ z a di/ribution describ$ 9       
section #djh7;d77#c7 ( su* ,code & 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 ,def9itions ,=       
purposes ( ?is subsection-- 7,a7        
,qualifi$ disa/] di/ribution ,except z  
provid$ 9 p>agraph 7#b71 ! t]m qualifi$ 
disa/] di/ribution means any di/ribution
 f an eligible retirem5t plan made-- 7i7
 on or aft] ! fir/ day ( ! incid5t p]iod

 ( a qualifi$ disa/] & be=e ,july #a1   
#bjbd1 &  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 ,eligible        
retirem5t plan ,! t]m eligible retirem5t
 plan %all h ! mean+ giv5 su* t]m by    
section #djb7;c77#h77;,b7 ( ! ,int]nal  
,rev5ue ,code ( #aihf4  7#e7 ,income    
inclusion spread ov] #c-ye> p]iod  7,a7 
,9 g5]al ,9 ! case ( any qualifi$ disa/]
 di/ribution1 unless ! taxpay] elects n 
to h ?is p>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  7,b7   
,special rule ,= purposes ( subp>agraph 
7,a71 rules simil> to ! rules (         
subp>agraph 7,e7 ( section              
#djh;,a7d77#c7 ( ! ,int]nal ,rev5ue     
,code ( #aihf %all apply4  7#f7 ,special

 rules  7,a7 ,exemption ( di/ributions f
 tru/ee to tru/ee transf] & )hold+ rules
 ,= purposes ( sections #dja7;a77#ca71  
#djb7;f71 & #cdje ( ! ,int]nal ,rev5ue  
,code ( #aihf1 qualifi$ disa/]          
di/ributions %all n be treat$ z eligible
 rollov] di/ributions4  7,b7 ,qualifi$  
disa/] di/ributions treat$ z meet+ plan 
di/ribution requirem5ts ,= purposes ( ! 
,int]nal ,rev5ue ,code ( #aihf1 a       
qualifi$ disa/] di/ribution %all be     
treat$ z meet+ ! requirem5ts ( sections 
#dja7k77#b77;,b77i71                    
#djc7;b77#g77;,a77i71 #djc7;b77#aa71 &  
#deg7;d77#a77;,a7 ( su* ,code & section 
#hdcc7;h77#a7 ( title #e1 ,unit$ ,/ates 
,code1 &1 9 ! case ( a money pur*ase    
p5sion plan1 a qualifi$ disa/]          
di/ribution :i* is an 9-s]vice )drawal  
%all be treat$ z meet+ ! di/ribution    
rules ( section #dja7;a7 ( su* ,code4   
7b7 ,recontributions ( )drawals = home  
pur*ases  7#a7 ,recontributions  7,a7 ,9
 g5]al ,any individual :o receiv$ a     
qualifi$ di/ribution may1 dur+ !        

applicable p]iod1 make #a 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;,b7 ( ! ,int]nal
 ,rev5ue ,code ( #aihf7 ( :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 ( su* ,code1 z ! case may 
be4  7,b7 ,treatm5t ( repaym5ts ,rules  
simil> to ! rules ( subp>agraphs 7,b7 & 
7,c7 ( subsection 7a77#c7 %all apply =  
purposes ( ?is subsection4  7#b7        
,qualifi$ di/ribution ,= purposes ( ?is 
subsection1 ! t]m qualifi$ di/ribution  
means any di/ribution-- 7,a7 describ$ 9 
section #dja7k77#b77;,b77i77,,iv71      
#djc7;b77#g77;,a77i77,v71               
#djc7;b77#aa77;,b71 or #gb7t77#b77;,f71 
( ! ,int]nal ,rev5ue ,code ( #aihf1     
7,b7 :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,c7 :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 ,applicable p]iod ,=       
purposes ( ?is subsection1 ! 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   
,june #cj1 #bjbd4  7c7 ,loans f qualifi$
 plans  7#a7 ,increase 9 limit on loans 
n treat$ z di/ributions ,9 ! case ( any 
loan f a qualifi$ employ] plan 7z def9$ 
"u section #gb7p77#d7 ( ! ,int]nal      
,rev5ue ,code ( #aihf7 to a qualifi$    
individual made dur+ ! p]iod beg9n+ on !
 date ( ! enactm5t ( ?is ,act & end+ on 
,june #cj1 #bjbd-- 7,a7 clause 7i7 (    
section #gb7p77#b77;,a7 ( su* ,code %all
 be appli$ by sub/itut+ #ajj1jjj =      
#ej1jjj1 &  7,b7 clause 7ii7 ( su*      

section %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 7on or aft] !  
fir/ day ( ! incid5t p]iod ( su*        
qualifi$ disa/]7 f a qualifi$ employ]   
plan 7z def9$ 9 section #gb7p77#d7 ( !  
,int]nal ,rev5ue ,code ( #aihf7-- 7,a7  
if ! due date pursuant to subp>agraph   
7,b7 or 7,c7 ( section #gb7p77#b7 ( su* 
,code = 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 %all be delay$ = #a 
ye> 7or1 if lat]1 until ,june #cj1      
#bjbd71  7,b7 any subsequ5t repaym5ts ) 
respect to any su* loan %all be         
appropriately adju/$ to reflect ! delay 
9 ! due date "u subp>agraph 7,a7 & any  

int]e/ accru+ dur+ su* delay1 &  7,c7 9 
det]m9+ ! #e-ye> p]iod & ! t]m ( a loan 
"u subp>agraph 7,b7 or 7,c7 ( section   
#gb7p77#b7 ( su* ,code1 ! p]iod describ$
 9 subp>agraph 7,a7 ( ?is p>agraph %all 
be disreg>d$4  7#c7 ,qualifi$ individual
 ,= purposes ( ?is subsection1 ! t]m    
qualifi$ individual means any           
individual-- 7,a7 ^: 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,b7 :o has su/a9$  
an economic loss by reason ( su*        
qualifi$ disa/]4  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 provision ( ?is section1
 or pursuant to any regulation issu$ by 
! ,secret>y or ! ,secret>y ( ,labor "u  
any provision ( ?is section1 &  7ii7 on 
or be=e ! la/ day ( ! fir/ plan ye>     
beg9n+ on or aft] ,janu>y #a1 #bjbd1 or 
su* lat] date z ! ,secret>y may         
prescribe4  ,9 ! case ( a gov]nm5tal    
plan 7z def9$ 9 section #dad7;d7 ( !    
,int]nal ,rev5ue ,code ( #aihf71 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 ?is section or !    
regulation describ$ 9 subp>agraph       
7,a77i7 takes effect 7or 9 ! case ( a   
plan or contract am5dm5t n requir$ 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    
effect1 &  7ii7 su* plan or contract    
am5dm5t applies retroactively = su*     
p]iod4  #d4 ,special rules = qualifi$   
disa/]-relat$ p]sonal casualty losses   
7a7 ,9 g5]al ,if an individual has a net
 disa/] loss = any taxable ye>-- 7#a7 ! 
am\nt det]m9$ "u section                
#afe7;h77#b77;,a77ii7 ( ! ,int]nal      
,rev5ue ,code ( #aihf %all be equal to !
 sum (-- 7,a7 su* net disa/] loss1 &    
7,b7 s mu* ( ! excess ref]r$ to 9 !     
matt] prec$+ clause 7i7 ( section       
#afe7;h77#b77;,a7 ( su* ,code 7r$uc$ by 
! am\nt 9 clause 7i7 ( ?is subp>agraph7 
z exce$s #aj p]c5t ( ! adju/$ gross     
income ( ! individual1  7#b7 9 ! case ( 
qualifi$ disa/]-relat$ p]sonal casualty 
losses1 section #afe7;h77#a7 ( su* ,code
 %all be appli$ to by sub/itut+ #ejj =  
#ejj 7#ajj = taxable ye>s beg9n+ aft]   
,decemb] #ca1 #bjji71  7#c7 ! /&>d      
d$uction det]m9$ "u section #fc7;c7 (   
su* ,code %all be increas$ by ! net     
disa/] loss1 &  7#d7 section            

#ef7;b77#a77;,e7 ( su* ,code %all n     
apply to s mu* ( ! /&>d d$uction z is   
attributable to ! increase "u           
subp>agraph 7,c7 ( ?is p>agraph4  7b7   
,net disa/] loss ,= purposes ( ?is      
subsection1 ! t]m net disa/] loss means 
! excess ( qualifi$ disa/]-relat$       
p]sonal casualty losses ov] p]sonal     
casualty ga9s 7z def9$ 9 section        
#afe7;h77#c77;,a7 ( ! ,int]nal ,rev5ue  
,code ( #aihf74  7c7 ,qualifi$          
disa/]-,relat$ p]sonal casualty losses  
,= purposes ( ?is subsection1 ! t]m     
qualifi$ disa/]-relat$ p]sonal casualty 
losses means losses describ$ 9 section  
#afe7;c77#c7 ( ! ,int]nal ,rev5ue ,code 
( #aihf :i* arise 9 a qualifi$ disa/]   
area on or aft] ! fir/ day ( ! incid5t  
p]iod ( ! qualifi$ disa/] to :i* su*    
area relates1 & :i* are attributable to 
su* qualifi$ disa/]4