I 

113TH CONGRESS 

2D SESSION H. R. 4403 

To amend the Internal Revenue Code of 1986 to waive the 10-percent penalty 

on qualified natural disaster distributions from qualified retirement plans. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 4, 2014 

Ms. CLARKE of New York (for herself, Mr. RANGEL, Mr. GRIMM, Mrs. 

MCCARTHY of New York, and Mr. RICHMOND) introduced the following 

bill; which was referred to the Committee on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to waive 

the 10-percent penalty on qualified natural disaster distributions from qualified retirement plans. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Homeowner Disaster 

5 Relief Act of 2014’’. 


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1 SEC. 2. WAIVER OF 10-PERCENT PENALTY ON QUALIFIED 

2 NATURAL DISASTER DISTRIBUTIONS FROM 

3 QUALIFIED RETIREMENT PLANS. 

4 (a) IN GENERAL.—Section 72(t)(2) of the Internal 

5 Revenue Code of 1986 is amended by adding at the end 

6 the following new subparagraph: 

7 ‘‘(H) QUALIFIED NATURAL DISASTER DIS8 TRIBUTIONS.— 

9 ‘‘(i) IN GENERAL.—Any qualified nat10 ural disaster distribution. 

11 ‘‘(ii) CROSS REFERENCE.—For defini12 tions and rules related to qualified natural 

13 disaster distributions, see paragraph 

14 (11).’’. 

15 (b) DEFINITIONS AND SPECIAL RULES.—Section 

16 72(t) of such Code is amended by adding at the end the 

17 following new paragraph: 

18 ‘‘(11) QUALIFIED NATURAL DISASTER DIS19 TRIBUTIONS.— 

20 ‘‘(A) IN GENERAL.—Except as provided in 

21 subparagraph (B), the term ‘qualified natural 

22 disaster distribution’ means any distribution 

23 from an individual retirement plan, or from 

24 amounts attributable to employer contributions 

25 made pursuant to elective deferrals described in 


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1 subparagraph (A) or (C) of section 402(g)(3) or 

2 section 501(c)(18)(D)(iii), to an individual if— 

3 ‘‘(i) such individual sustained an eco4 nomic loss by reason of a federally de5 clared disaster, 

6 ‘‘(ii) the principal place of abode of 

7 such individual on the disaster declaration 

8 date is in the disaster area, and 

9 ‘‘(iii) such distribution is made during 

10 the 1-year period beginning on the disaster 

11 declaration date. 

12 ‘‘(B) AGGREGATE DOLLAR LIMITATION.— 

13 ‘‘(i) IN GENERAL.—The aggregate 

14 amount of distributions received by an in15 dividual which may be treated as qualified 

16 natural disaster distributions for any tax17 able year with respect to any federally de18 clared disaster shall not exceed the excess 

19 (if any) of— 

20 ‘‘(I) $100,000, over 

21 ‘‘(II) the aggregate amounts 

22 treated as qualified natural disaster 

23 distributions with respect to such fed24 erally declared disaster received by 


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1 such individual for all prior taxable 

2 years. 

3 ‘‘(ii) TREATMENT OF PLAN DISTRIBU4 TIONS.—If a distribution to an individual 

5 would (without regard to clause (i)) be a 

6 qualified natural disaster distribution, a 

7 plan shall not be treated as violating any 

8 requirement of this title merely because 

9 the plan treats such distribution as a 

10 qualified natural disaster distribution, un11 less the aggregate amount of such distribu12 tions from all plans maintained by the em13 ployer (and any member of any controlled 

14 group which includes the employer) to such 

15 individual exceeds $100,000. 

16 ‘‘(iii) CONTROLLED GROUP.—For pur17 poses of clause (ii), the term ‘controlled 

18 group’ means any group treated as a single 

19 employer under subsection (b), (c), (m), or 

20 (o) of section 414. 

21 ‘‘(C) AMOUNT DISTRIBUTED MAY BE RE22 PAID.—Any individual who receives a qualified 

23 natural disaster distribution may, at any time 

24 during the 3-year period beginning on the day 

25 after the date on which such distribution was 


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1 received, make one or more contributions to an 

2 individual retirement plan of such individual in 

3 an aggregate amount not to exceed the amount 

4 of such distribution. The dollar limitations oth5 erwise applicable to contributions to individual 

6 retirement plans shall not apply to any con7 tribution made pursuant to the preceding sen8 tence. No deduction shall be allowed for any 

9 contribution pursuant to this subparagraph. 

10 ‘‘(D) FEDERALLY DECLARED DISASTER.— 

11 For purposes of this paragraph— 

12 ‘‘(i) IN GENERAL.—The term ‘feder13 ally declared disaster’ means any disaster 

14 subsequently determined by the President 

15 of the United States to warrant assistance 

16 by the Federal Government under the Rob17 ert T. Stafford Disaster Relief and Emer18 gency Assistance Act. 

19 ‘‘(ii) DISASTER AREA.—The term ‘dis20 aster area’ means the area so determined 

21 to warrant such assistance. 

22 ‘‘(iii) DISASTER DECLARATION

23 DATE.—The term ‘disaster declaration 

24 date’ means the date of such determina25 tion.’’. 


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1 (c) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to distributions made after the 

3 date of the enactment of this Act. 

Æ 


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