,,ii  #aai? ,,congress  #a/ ,session    
,s4 #biff  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,octob] #a1 #bjbe,mr4  
,ka9e 7= himself1 ,ms4 ,cortez ,ma/o1   
,ms4 ,duckwor?1 ,mr4 ,w>n]1 ,ms4        
,alsobrooks1 ,mr4 ,wyd51 ,mr4 ,m>key1   
,mrs4 ,%ahe51 ,mr4 ,hick5loop]1 ,mr4    
,s*atz1 ,mr4 ,blum5?al1 ,ms4 ,hirono1   
,mr4 ,van ,holl51 ,mr4 ,coons1 ,mr4     
,durb91 ,mr4 ,padilla1 ,mr4 ,book]1 &   
,ms4 ,ros57 introduc$ ! foll[+ bill2 :i*
 0 read twice & ref]r$ to ! ,committee  
on ,f9ance  ,a ,,bill  ,to am5d !       
,int]nal ,rev5ue ,code ( #aihf to waive 
c]ta9 p5alties = affect$ ,f$]al         
employees receiv+ a di/ribution f !     
,?rift ,sav+s ,plan dur+ a lapse 9      
appropriations1 & = o!r purposes4  #a4  
,%ort title ,?is ,act may be cit$ z !   
,em]g5cy ,relief = ,f$]al ,work]s ,act (
 #bjbe4  #b4 ,waiv] ( #aj-p]c5t         
additional tax on c]ta9 f9ancial h>d%ip 
di/ributions f ,?rift ,sav+s ,plan  7a7 
,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,o7 ,di/ributions to     
,f$]al employees affect$ by a qualifi$  
lapse 9 appropriations  7i7 ,9 g5]al    
,di/ributions made f ! ,?rift ,sav+s    
,plan "u sub*apt] ,,iii ( *apt] #hd (   
title #e1 ,unit$ ,/ates ,code1 to an    
individual :o is a ,f$]al employee & :o 
is on furl\gh or :o is work+ )\t pay due
 to a qualifi$ lapse 9 appropriations1  
if su* di/ributions are made dur+ !     
p]iod ( su* qualifi$ lapse 9            
appropriations 7includ+ di/ributions :i*
 are 9 process z ( ! end ( su* lapse74  
7ii7 ,limitation ,subclause 7i7 %all    
apply to any di/ributions only to !     
ext5t ! aggregate ( su* di/ributions    
does n exce$ #cj1jjj ) respect to any   
qualifi$ lapse 9 appropriations4  7iii7 
,adju/m5t = inflation ,9 ! case ( a     
taxable ye> beg9n+ aft] ,decemb] #ca1   
#bjbe1 ! #cj1jjj am\nt 9 clause 7ii7    
%all be increas$ by an am\nt equal to-- 
7,i7 su* doll> am\nt1 multipli$ by      
7,,ii7 ! co/-(-liv+ adju/m5t det]m9$ "u 

section #a7;f77#c7 = ! cal5d> ye> 9 :i* 
! taxable ye> beg9s1 det]m9$ by         
sub/itut+ cal5d> ye> #bjbd = cal5d> ye> 
#bjaf 9 subp>agraph 7,a77ii7 !re(4  ,if 
any am\nt aft] adju/m5t "u ! prec$+     
s5t5ce is n a multiple ( #ajj1 su* am\nt
 %all be r\nd$ to ! next l[] multiple ( 
#ajj4  7iv7 ,qualifi$ lapse 9           
appropriations ,= purposes ( ?is        
subp>agraph1 ! t]m qualifi$ lapse 9     
appropriations means a p]iod ( cont9u\s 
lapse 9 ,f$]al appropriations 7includ+ a
 p>tial lapse7 ( at lea/ #b weeks4  7v7 
,o!r t]ms ,= purposes ( ?is subp>agraph1
 ! t]ms furl\gh & pay h ! respective    
mean+s giv5 su* t]ms by section #geaa ( 
title #e1 ,unit$ ,/ates ,code4  4  7b7  
,effective date ,! am5dm5t made by ?is  
section %all apply to di/ributions made 
aft] ,septemb] #cj1 #bjbe4  #c4 ,?rift  
,sav+s ,plan provisions  7a7 ,9-,s]vice 
)drawals ,section #hdcc7;h7 ( title #e1 
,unit$ ,/ates ,code1 is am5d$ by add+ at
 ! end ! foll[+3  7#e7 7,a7 ,9 ?is      
p>agraph-- 7i7 ! t]m applicable date1 ) 

respect to a cov]$ age-bas$ )drawal or  
cov]$ h>d%ip )drawal made dur+ a        
qualifi$ lapse 9 appropriations1 means !
 date t is #abj days aft] ! la/ day ( ! 
qualifi$ lapse 9 appropriations2  7ii7 !
 t]m cov]$ age-bas$ )drawal means a     
)drawal "u p>agraph 7#a77;,a7 made dur+ 
! p]iod ( a qualifi$ lapse 9            
appropriations2  7iii7 ! t]m cov]$      
h>d%ip )drawal means a )drawal describ$ 
9 subp>agraph 7,b72  7iv7 ! t]m furl\gh 
has ! mean+ giv5 ! t]m 9 section #geaa2 
7v7 ! t]m pay has ! mean+ giv5 ! t]m 9  
section #geaa2 &  7vi7 ! t]m qualifi$   
lapse 9 appropriations has ! mean+ giv5 
! t]m 9 section #gb7t77#b77,o7 ( !      
,int]nal ,rev5ue ,code ( #aihf4  7,b7 ,!
 ,bo>d %all p]mit an employee :o is on  
furl\gh or work+ )\t pay due to a       
qualifi$ lapse 9 appropriations to make 
a )drawal bas$ ^u f9ancial h>d%ip "u    
p>agraph 7#a77;,b7 if-- 7i7 ! )drawal is
 made dur+ ! p]iod ( su* qualifi$ lapse 
9 appropriations 7includ+ )drawals :i*  
are 9 process z ( ! end ( su* lapse72 & 

7ii7 ! aggregate am\nt ( any su*        
)drawals dur+ ! p]iod describ$ 9 clause 
7i7 does n exce$ #cj1jjj1 subject to    
adju/m5ts = inflation "u subp>agraph    
7,e74  7,c7 ,! ,bo>d may n limit ! numb]
 ( cov]$ h>d%ip )drawals t an employee  
may make dur+ ! p]iod ( a qualifi$ lapse
 9 appropriations1 subject to ! doll>   
limitation "u subp>agraph 7,b77ii74     
7,d7 7i7 ,an individual :o makes #a or m
 cov]$ h>d%ip )drawals or #a or m cov]$ 
age-bas$ )drawals dur+ ! p]iod ( a      
qualifi$ lapse 9 appropriations may1    
be=e ! applicable date1 make #a or m    
contributions to ! ,?rift ,sav+s ,fund 9
 an aggregate am\nt n to exce$ ! less]  
(-- 7,i7 ! aggregate am\nt ( ! )drawals2
 or  7,,ii7 #cj1jjj1 subject to         
adju/m5ts = inflation "u subp>agraph    
7,e74  7ii7 ,an individual :o makes a   
contribution to ! ,?rift ,sav+s ,fund "u
 clause 7i7 %all1 to ! ext5t ( !        
contribution1 be treat$ z hav+ receiv$ !
 cov]$ age-bas$ )drawal or cov]$ h>d%ip 
)drawal1 z applicable1 9 an eligible    

rollov] di/ribution 7z def9$ 9 section  
#djb7;c77#d7 ( ! ,int]nal ,rev5ue ,code 
( #aihf7 & z hav+ transf]r$ ! am\nt to !
 ,?rift ,sav+s ,fund 9 a direct tru/ee  
to tru/ee transf] )9 #fj days ( !       
di/ribution4  7iii7 ,= purposes (       
sections #dja7;a77#ca71 #djb7;f71 &     
#cdje ( ! ,int]nal ,rev5ue ,code (      
#aihf1 a cov]$ age-bas$ )drawal or cov]$
 h>d%ip )drawal %all n be treat$ z an   
eligible rollov] di/ribution4  7,e7 ,!  
doll> limitation "u subp>agraphs        
7,b77ii7 & 7,d77i77,,ii7 %all be adju/$ 
= inflation 9 ! same mann] z "u section 
#gb7t77#b77,o77iii7 ( ! ,int]nal ,rev5ue
 ,code ( #aihf4  7,f7 ,! ,bo>d may rely 
on a writt5 repres5tation f an employee 
to det]m9e1 = purposes ( ?is p>agraph1  
:e!r ! employee has be5 furl\gh$ or is  
work+ )\t pay due to a qualifi$ lapse 9 
appropriations4  7,g7 ,! ,director may  
require ea* ag5cy affect$ by a qualifi$ 
lapse 9 appropriations1 z "p ( ! %utd[n 
proc$ures ( ! ag5cy1 to submit to !     
,executive ,director a li/ ) ! "n &     

social security numb] ( ea* employee ( !
 ag5cy :o w be furl\gh$ or w "w )\t pay 
due to ! qualifi$ lapse 9               
appropriations4  4  7b7 ,loans ,section 
#hdcc7;g7 ( title #e1 ,unit$ ,/ates     
,code1 is am5d$ by add+ at ! end !      
foll[+3  7#e7 7,a7 ,! ,bo>d %all        
prescribe rules all[+ loans to be made  
"u ?is subsection to employees :o are   
furl\gh$ or work+ )\t pay due to a lapse
 9 appropriations1 )\t reg>d to ! p]iod 
( ! lapse 9 appropriations4  7,b7 ,=    
purposes ( subp>agraph 7,a71 ! t]ms     
furl\gh & pay h ! mean+s giv5 ^? t]ms 9 
section #geaa4  7#f7 7,a7 ,9 ?is        
p>agraph-- 7i7 ! t]m furl\gh has ! mean+
 giv5 ! t]m 9 section #geaa2  7ii7 ! t]m
 pay has ! mean+ giv5 ! t]m 9 section   
#geaa2  7iii7 ! t]m paym5t miss$ because
 ( a %utd[n means a paym5t-- 7,i7 on a  
loan "u ?is subsection made to an       
employee :o is on furl\gh or work+ )\t  
pay due to a qualifi$ lapse 9           
appropriations2  7,,ii7 t is due dur+ ! 
qualifi$ lapse 9 appropriations2 &      

7,,iii7 t 0 n paid by ! employee2 &     
7iv7 ! t]m qualifi$ lapse 9             
appropriations has ! mean+ giv5 ! t]m 9 
section #gb7t77#b77,o7 ( ! ,int]nal     
,rev5ue ,code ( #aihf4  7,b7 ,! ,bo>d   
%all prescribe rules provid+ t ! full   
am\nt due = out/&+ paym5ts miss$ because
 ( a %utd[n by an employee %all be      
d$uct$ & )held f ! pay provid$ to !     
employee = ! p]iod ( ! qualifi$ lapse 9 
appropriations4  4  #d4 ,miss$ loan     
paym5ts n to be treat$ z taxable        
di/ribution dur+ a qualifi$ lapse 9     
appropriations  7a7 ,9 g5]al ,p>agraph  
7#b7 ( section #gb7p7 ( ! ,int]nal      
,rev5ue ,code ( #aihf is am5d$ by       
r$esignat+ subp>agraph 7,e7 z           
subp>agraph 7,f7 & by ins]t+ aft]       
subp>agraph 7,d7 ! foll[+ new           
subp>agraph3  7,e7 ,special rule = miss$
 loan repaym5t dur+ a qualifi$ lapse 9  
appropriations ,subp>agraph 7,a7 %all n 
fail to apply to any loan f ! ,?rift    
,sav+s ,plan "u sub*apt] ,,iii ( *apt]  
#hd ( title #e1 ,unit$ ,/ates ,code1    

solely because !re is a paym5t miss$    
because ( a %utd[n 7z def9$ 9 section   
#hdcc7;g77#f77;,a77i7 ( title #e1 ,unit$
 ,/ates ,code7 ) respect to su* loan1 & 
su* loan 7or any portion ( su* loan7    
%all n be treat$ z a taxable di/ribution
 solely because ( su* miss$ paym5t4  4  
7b7 ,effective date ,! am5dm5t made by  
?is section %all apply to miss$ loan    
paym5ts ! due date = :i* is aft]        
,septemb] #cj1 #bjbe4