To amend the Internal Revenue Code of 1986 to provide for distributions from retirement plans for losses as a result of the explosion on and sinking of the mobile offshore drilling unit Deepwater Horizon, the discharge of oil in the Gulf of Mexico caused by such explosion and sinking, or the effects of such discharge on the economy in the areas affected by such discharge.

Summary: Gulf Coast Access to Savings Act of 2010 - Amends the Internal Revenue Code to allow tax-free distributions, up to $50,000 in any taxable year, from retirement plans on or after April 20, 2010, and before January 1, 2011, for individuals whose principal place of abode is in Florida, Alabama, Mississippi, Louisiana, or Texas and who sustained an economic loss caused by the explosion on and sinking of the Deepwater Horizon offshore drilling unit, the resulting discharge of oil in the Gulf of Mexico, or the effects of such discharge on the economy in the affected areas. Provides tax incentives for the use of distributions by individuals in affected states to make home purchases. Increases to $100,000 the amount which may be borrowed without penalty from an employer benefit plan by individuals in affected states.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Gulf Coast Access to Savings Act of 
2010''.

SEC. 2. DISTRIBUTIONS FROM RETIREMENT PLANS FOR LOSSES BY REASON OF 
              GULF OIL SPILL.

    (a) In General.--Subchapter Y of chapter 1 of the Internal Revenue 
Code of 1986 is amended by adding at the end the following new part:

                       ``PART IV--GULF OIL SPILL

``SEC. 1400V-1. SPECIAL RULES FOR USE OF RETIREMENT FUNDS.

    ``(a) Tax-favored Withdrawals From Retirement Plans.--
            ``(1) In general.--Section 72(t) shall not apply to any 
        qualified oil spill distribution.
            ``(2) Aggregate dollar limitation.--
                    ``(A) In general.--For purposes of this subsection, 
                the aggregate amount of distributions received by an 
                individual which may be treated as qualified oil spill 
                distributions for any taxable year shall not exceed the 
                excess (if any) of--
                            ``(i) $50,000, over
                            ``(ii) the aggregate amounts treated as 
                        qualified oil spill distributions received by 
                        such individual for all prior taxable years.
                    ``(B) Treatment of plan distributions.--If a 
                distribution to an individual would (without regard to 
                subparagraph (A)) be a qualified oil spill 
                distribution, a plan shall not be treated as violating 
                any requirement of this title merely because the plan 
                treats such distribution as a qualified oil spill 
                distribution, unless the aggregate amount of such 
                distributions from all plans maintained by the employer 
                (and any member of any controlled group which includes 
                the employer) to such individual exceeds $50,000.
                    ``(C) Controlled group.--For purposes of 
                subparagraph (B), the term `controlled group' means any 
                group treated as a single employer under subsection 
                (b), (c), (m), or (o) of section 414.
            ``(3) Amount distributed may be repaid.--
                    ``(A) In general.--Any individual who receives a 
                qualified oil spill distribution may, at any time 
                during the 3-year period beginning on the day after the 
                date on which such distribution was received, 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 402(c), 
                403(a)(4), 403(b)(8), 408(d)(3), or 457(e)(16), as the 
                case may be.
                    ``(B) Treatment of repayments of distributions from 
                eligible retirement plans other than iras.--For 
                purposes of this title, if a contribution is made 
                pursuant to subparagraph (A) with respect to a 
                qualified oil spill distribution from an eligible 
                retirement plan other than an individual retirement 
                plan, then the taxpayer shall, to the extent of the 
                amount of the contribution, be treated as having 
                received the qualified oil spill distribution in an 
                eligible rollover distribution (as defined in section 
                402(c)(4)) and as having transferred the amount to the 
                eligible retirement plan in a direct trustee to trustee 
                transfer within 60 days of the distribution.
                    ``(C) Treatment of repayments for distributions 
                from iras.--For purposes of this title, if a 
                contribution is made pursuant to subparagraph (A) with 
                respect to a qualified oil spill distribution from an 
                individual retirement plan (as defined by section 
                7701(a)(37)), then, to the extent of the amount of the 
                contribution, the qualified oil spill distribution 
                shall be treated as a distribution described in section 
                408(d)(3) and as having been transferred to the 
                eligible retirement plan in a direct trustee to trustee 
                transfer within 60 days of the distribution.
            ``(4) Definitions.--For purposes of this subsection--
                    ``(A) Qualified oil spill distribution.--Except as 
                provided in paragraph (2), the term `qualified oil 
                spill distribution' means any distribution from an 
                eligible retirement plan made on or after April 20, 
                2010, and before January 1, 2011, to an individual 
                whose principal place of abode on April 20, 2010, is 
                located in the State of Florida, Alabama, Mississippi, 
                Louisiana, or Texas and who has sustained an economic 
                loss as a result of the explosion on and sinking of the 
                mobile off shore drilling unit Deepwater Horizon, the 
                discharge of oil in the Gulf of Mexico caused by such 
                explosion and sinking, or the effects of such discharge 
                on the economy in the areas affected by such discharge.
                    ``(B) Eligible retirement plan.--The term `eligible 
                retirement plan' shall have the meaning given such term 
                by section 402(c)(8)(B).
            ``(5) Income inclusion spread over 3-year period.--
                    ``(A) In general.--In the case of any qualified oil 
                spill distribution, unless the taxpayer elects not to 
                have this paragraph apply for any taxable year, any 
                amount required to be included in gross income for such 
                taxable year shall be so included ratably over the 3-
                taxable year period beginning with such taxable year.
                    ``(B) Special rule.--For purposes of subparagraph 
                (A), rules similar to the rules of subparagraph (E) of 
                section 408A(d)(3) shall apply.
            ``(6) Special rules.--
                    ``(A) Exemption of distributions from trustee to 
                trustee transfer and withholding rules.--For purposes 
                of sections 401(a)(31), 402(f), and 3405, qualified oil 
                spill distributions shall not be treated as eligible 
                rollover distributions.
                    ``(B) Qualified hurricane distributions treated as 
                meeting plan distribution requirements.--For purposes 
                this title, a qualified hurricane distribution shall be 
                treated as meeting the requirements of sections 
                401(k)(2)(B)(i), 403(b)(7)(A)(ii), 403(b)(11), and 
                457(d)(1)(A).
    ``(b) Recontributions of Withdrawals for Home Purchases.--
            ``(1) Recontributions.--
                    ``(A) In general.--Any individual who received a 
                qualified distribution may, during the applicable 
                period, make one or more contributions in an aggregate 
                amount not to exceed the amount of such qualified 
                distribution to an eligible retirement plan (as defined 
                in section 402(c)(8)(B)) of which such individual is a 
                beneficiary and to which a rollover contribution of 
                such distribution could be made under section 402(c), 
                403(a)(4), 403(b)(8), or 408(d)(3), as the case may be.
                    ``(B) Treatment of repayments.--Rules similar to 
                the rules of subparagraphs (B) and (C) of subsection 
                (a)(3) shall apply for purposes of this subsection.
            ``(2) Qualified distribution.--For purposes of this 
        subsection--
                    ``(A) In general.--The term `qualified 
                distribution' means any distribution--
                            ``(i) described in section 
                        401(k)(2)(B)(i)(IV), 403(b)(7)(A)(ii) (but only 
                        to the extent such distribution relates to 
                        financial hardship), 403(b)(11)(B), or 
                        72(t)(2)(F),
                            ``(ii) received after October 19, 2009, and 
                        before April 20, 2010, and
                            ``(iii) which was to be used to purchase or 
                        construct a principal residence in the State of 
                        Florida, Alabama, Mississippi, Louisiana, or 
                        Texas Hurricane Katrina disaster area, but 
                        which was not so purchased or constructed on 
                        account of the explosion on and sinking of the 
                        mobile off shore drilling unit Deepwater 
                        Horizon or the discharge of oil in the Gulf of 
                        Mexico caused by such explosion and sinking.
            ``(3) Applicable period.--For purposes of this subsection, 
        the term `applicable period' means the period beginning on 
        April 20, 2010, and ending on December 31, 2010.
    ``(c) Loans From Qualified Plans.--
            ``(1) Increase in limit on loans not treated as 
        distributions.--In the case of any loan from a qualified 
        employer plan (as defined under section 72(p)(4)) to a 
        qualified individual made during the applicable period--
                    ``(A) clause (i) of section 72(p)(2)(A) shall be 
                applied by substituting `$100,000' for `$50,000', and
                    ``(B) clause (ii) 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 plan'.
            ``(2) Delay of repayment.--In the case of a qualified 
        individual with an outstanding loan on or after the qualified 
        beginning date from a qualified employer plan (as defined in 
        section 72(p)(4))--
                    ``(A) if the due date pursuant to subparagraph (B) 
                or (C) of section 72(p)(2) for any repayment with 
                respect to such loan occurs during the period beginning 
                on the qualified beginning date and ending on December 
                31, 2010, such due date shall be delayed for 1 year,
                    ``(B) any subsequent repayments with respect to any 
                such loan shall be appropriately adjusted to reflect 
                the delay in the due date under paragraph (1) and any 
                interest accruing during such delay, and
                    ``(C) in determining the 5-year period and the term 
                of a loan under subparagraph (B) or (C) of section 
                72(p)(2), the period described in subparagraph (A) 
                shall be disregarded.
            ``(3) Qualified individual.--For purposes of this 
        subsection, the term `qualified individual' means any 
        individual whose principal place of abode on April 20, 2010, is 
        located in the State of Florida, Alabama, Mississippi, 
        Louisiana, or Texas and who has sustained an economic loss as a 
        result of the explosion on and sinking of the mobile off shore 
        drilling unit Deepwater Horizon, the discharge of oil in the 
        Gulf of Mexico caused by such explosion and sinking, or the 
        effects of such discharge on the economy in the areas affected 
        by such discharge.
            ``(4) Applicable period; qualified beginning date.--For 
        purposes of this subsection--
                    ``(A) the applicable period is the period beginning 
                on April 20, 2010, and ending on December 31, 2010, and
                    ``(B) the qualified beginning date is April 20, 
                2010.
    ``(d) Provisions Relating to Plan Amendments.--
            ``(1) In general.--If this subsection applies to any 
        amendment to any plan or annuity contract, such plan or 
        contract shall be treated as being operated in accordance with 
        the terms of the plan during the period described in paragraph 
        (2)(B)(i).
            ``(2) Amendments to which subsection applies.--
                    ``(A) In general.--This subsection shall apply to 
                any amendment to any plan or annuity contract which is 
                made--
                            ``(i) pursuant to any provision of this 
                        section, or pursuant to any regulation issued 
                        by the Secretary or the Secretary of Labor 
                        under any provision of this section, and
                            ``(ii) on or before the last day of the 
                        first plan year beginning on or after April 20, 
                        2010, or such later date as the Secretary may 
                        prescribe.
                In the case of a governmental plan (as defined in 
                section 414(d)), clause (ii) shall be applied by 
                substituting the date which is 2 years after the date 
                otherwise applied under clause (ii).
                    ``(B) Conditions.--This subsection shall not apply 
                to any amendment unless--
                            ``(i) during the period--
                                    ``(I) beginning on the date that 
                                this section or the regulation 
                                described in subparagraph (A)(i) takes 
                                effect (or in the case of a plan or 
                                contract amendment not required by this 
                                section or such regulation, the 
                                effective date specified by the plan), 
                                and
                                    ``(II) ending on the date described 
                                in subparagraph (A)(ii) (or, if 
                                earlier, the date the plan or contract 
                                amendment is adopted),
                        the plan or contract is operated as if such 
                        plan or contract amendment were in effect, and
                            ``(ii) such plan or contract amendment 
                        applies retroactively for such period.''.
    (b) Conforming Amendment.--The table of sections for subchapter Y 
of chapter 1 of such Code is amended by adding at the end the following 
new item:

                       ``Part IV--Gulf Oil Spill

``Sec. 1400V-1. Special rules for use of retirement funds.''.
    (c) Effective Date.--The amendments made by this Act shall apply to 
distributions on or after April 20, 2010.