Homeowner Disaster Relief Act of 2014

Summary: Homeowner Disaster Relief Act of 2014 - Amends the Internal Revenue Code to exempt any qualified natural disaster distribution from the 10% penalty on premature distributions from tax-exempt retirement plans. Defines "qualified natural diasaster distribution" as a distribution from a retirement plan to an individual if: (1) such individual sustained an economic loss due to a federally-declared disaster, (2) the principal place of abode of such individual on the&nbsp;disaster declaration date is in the disaster area, and (3) such distribution is made during the one-year period beginning on the disaster declaration date. &nbsp;

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Homeowner Disaster Relief Act of 
2014''.

SEC. 2. WAIVER OF 10-PERCENT PENALTY ON QUALIFIED NATURAL DISASTER 
              DISTRIBUTIONS FROM QUALIFIED RETIREMENT PLANS.

    (a) In General.--Section 72(t)(2) of the Internal Revenue Code of 
1986 is amended by adding at the end the following new subparagraph:
                    ``(H) Qualified natural disaster distributions.--
                            ``(i) In general.--Any qualified natural 
                        disaster distribution.
                            ``(ii) Cross reference.--For definitions 
                        and rules related to qualified natural disaster 
                        distributions, see paragraph (11).''.
    (b) Definitions and Special Rules.--Section 72(t) of such Code is 
amended by adding at the end the following new paragraph:
            ``(11) Qualified natural disaster distributions.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the term `qualified natural disaster 
                distribution' means any distribution from an individual 
                retirement plan, or from amounts attributable to 
                employer contributions made pursuant to elective 
                deferrals described in subparagraph (A) or (C) of 
                section 402(g)(3) or section 501(c)(18)(D)(iii), to an 
                individual if--
                            ``(i) such individual sustained an economic 
                        loss by reason of a federally declared 
                        disaster,
                            ``(ii) the principal place of abode of such 
                        individual on the disaster declaration date is 
                        in the disaster area, and
                            ``(iii) such distribution is made during 
                        the 1-year period beginning on the disaster 
                        declaration date.
                    ``(B) Aggregate dollar limitation.--
                            ``(i) In general.--The aggregate amount of 
                        distributions received by an individual which 
                        may be treated as qualified natural disaster 
                        distributions for any taxable year with respect 
                        to any federally declared disaster shall not 
                        exceed the excess (if any) of--
                                    ``(I) $100,000, over
                                    ``(II) the aggregate amounts 
                                treated as qualified natural disaster 
                                distributions with respect to such 
                                federally declared disaster received by 
                                such individual for all prior taxable 
                                years.
                            ``(ii) Treatment of plan distributions.--If 
                        a distribution to an individual would (without 
                        regard to clause (i)) be a qualified natural 
                        disaster distribution, a plan shall not be 
                        treated as violating any requirement of this 
                        title merely because the plan treats such 
                        distribution as a qualified natural disaster 
                        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 $100,000.
                            ``(iii) Controlled group.--For purposes of 
                        clause (ii), the term `controlled group' means 
                        any group treated as a single employer under 
                        subsection (b), (c), (m), or (o) of section 
                        414.
                    ``(C) Amount distributed may be repaid.--Any 
                individual who receives a qualified natural disaster 
                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 to an individual retirement plan of such 
                individual in an aggregate amount not to exceed the 
                amount of such distribution. The dollar limitations 
                otherwise applicable to contributions to individual 
                retirement plans shall not apply to any contribution 
                made pursuant to the preceding sentence. No deduction 
                shall be allowed for any contribution pursuant to this 
                subparagraph.
                    ``(D) Federally declared disaster.--For purposes of 
                this paragraph--
                            ``(i) In general.--The term `federally 
                        declared disaster' means any disaster 
                        subsequently determined by the President of the 
                        United States to warrant assistance by the 
                        Federal Government under the Robert T. Stafford 
                        Disaster Relief and Emergency Assistance Act.
                            ``(ii) Disaster area.--The term `disaster 
                        area' means the area so determined to warrant 
                        such assistance.
                            ``(iii) Disaster declaration date.--The 
                        term `disaster declaration date' means the date 
                        of such determination.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to distributions made after the date of the enactment of this 
Act.