I 

111TH CONGRESS 

2D SESSION H. R. 5602 

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. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 24, 2010 

Mr. PUTNAM (for himself and Mr. BOUSTANY) 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 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. 

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


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Gulf Coast Access to 

3 Savings Act of 2010’’. 

4 SEC. 2. DISTRIBUTIONS FROM RETIREMENT PLANS FOR 

5 LOSSES BY REASON OF GULF OIL SPILL. 

6 (a) IN GENERAL.—Subchapter Y of chapter 1 of the 

7 Internal Revenue Code of 1986 is amended by adding at 

8 the end the following new part: 

9 ‘‘PART IV—GULF OIL SPILL 

10 ‘‘SEC. 1400V-1. SPECIAL RULES FOR USE OF RETIREMENT 

11 FUNDS. 

12 ‘‘(a) TAX-FAVORED WITHDRAWALS FROM RETIRE13 MENT PLANS.— 

14 ‘‘(1) IN GENERAL.—Section 72(t) shall not 

15 apply to any qualified oil spill distribution. 

16 ‘‘(2) AGGREGATE DOLLAR LIMITATION.— 

17 ‘‘(A) IN GENERAL.—For purposes of this 

18 subsection, the aggregate amount of distribu19 tions received by an individual which may be 

20 treated as qualified oil spill distributions for 

21 any taxable year shall not exceed the excess (if 

22 any) of— 

23 ‘‘(i) $50,000, over 

24 ‘‘(ii) the aggregate amounts treated as 

25 qualified oil spill distributions received by 

26 such individual for all prior taxable years. 


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1 ‘‘(B) TREATMENT OF PLAN DISTRIBU2 TIONS.—If a distribution to an individual would 

3 (without regard to subparagraph (A)) be a 

4 qualified oil spill distribution, a plan shall not 

5 be treated as violating any requirement of this 

6 title merely because the plan treats such dis7 tribution as a qualified oil spill distribution, un8 less the aggregate amount of such distributions 

9 from all plans maintained by the employer (and 

10 any member of any controlled group which in11 cludes the employer) to such individual exceeds 

12 $50,000. 

13 ‘‘(C) CONTROLLED GROUP.—For purposes 

14 of subparagraph (B), the term ‘controlled 

15 group’ means any group treated as a single em16 ployer under subsection (b), (c), (m), or (o) of 

17 section 414. 

18 ‘‘(3) AMOUNT DISTRIBUTED MAY BE REPAID.— 

19 ‘‘(A) IN GENERAL.—Any individual who 

20 receives a qualified oil spill distribution may, at 

21 any time during the 3-year period beginning on 

22 the day after the date on which such distribu23 tion was received, make one or more contribu24 tions in an aggregate amount not to exceed the 

25 amount of such distribution to an eligible retireVerDate Mar 15 2010 06:24 Jun 25, 2010 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H5602.IH H5602

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1 ment plan of which such individual is a bene2 ficiary and to which a rollover contribution of 

3 such distribution could be made under section 

4 402(c), 403(a)(4), 403(b)(8), 408(d)(3), or 

5 457(e)(16), as the case may be. 

6 ‘‘(B) TREATMENT OF REPAYMENTS OF

7 DISTRIBUTIONS FROM ELIGIBLE RETIREMENT

8 PLANS OTHER THAN IRAS.—For purposes of 

9 this title, if a contribution is made pursuant to 

10 subparagraph (A) with respect to a qualified oil 

11 spill distribution from an eligible retirement 

12 plan other than an individual retirement plan, 

13 then the taxpayer shall, to the extent of the 

14 amount of the contribution, be treated as hav15 ing received the qualified oil spill distribution in 

16 an eligible rollover distribution (as defined in 

17 section 402(c)(4)) and as having transferred 

18 the amount to the eligible retirement plan in a 

19 direct trustee to trustee transfer within 60 days 

20 of the distribution. 

21 ‘‘(C) TREATMENT OF REPAYMENTS FOR

22 DISTRIBUTIONS FROM IRAS.—For purposes of 

23 this title, if a contribution is made pursuant to 

24 subparagraph (A) with respect to a qualified oil 

25 spill distribution from an individual retirement 


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1 plan (as defined by section 7701(a)(37)), then, 

2 to the extent of the amount of the contribution, 

3 the qualified oil spill distribution shall be treat4 ed as a distribution described in section 

5 408(d)(3) and as having been transferred to the 

6 eligible retirement plan in a direct trustee to 

7 trustee transfer within 60 days of the distribu8 tion. 

9 ‘‘(4) DEFINITIONS.—For purposes of this sub10 section— 

11 ‘‘(A) QUALIFIED OIL SPILL DISTRIBU12 TION.—Except as provided in paragraph (2), 

13 the term ‘qualified oil spill distribution’ means 

14 any distribution from an eligible retirement 

15 plan made on or after April 20, 2010, and be16 fore January 1, 2011, to an individual whose 

17 principal place of abode on April 20, 2010, is 

18 located in the State of Florida, Alabama, Mis19 sissippi, Louisiana, or Texas and who has sus20 tained an economic loss as a result of the explo21 sion on and sinking of the mobile off shore 

22 drilling unit Deepwater Horizon, the discharge 

23 of oil in the Gulf of Mexico caused by such ex24 plosion and sinking, or the effects of such disVerDate Mar 15 2010 06:24 Jun 25, 2010 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H5602.IH H5602

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1 charge on the economy in the areas affected by 

2 such discharge. 

3 ‘‘(B) ELIGIBLE RETIREMENT PLAN.—The 

4 term ‘eligible retirement plan’ shall have the 

5 meaning given such term by section 

6 402(c)(8)(B). 

7 ‘‘(5) INCOME INCLUSION SPREAD OVER 3-YEAR

8 PERIOD.— 

9 ‘‘(A) IN GENERAL.—In the case of any 

10 qualified oil spill distribution, unless the tax11 payer elects not to have this paragraph apply 

12 for any taxable year, any amount required to be 

13 included in gross income for such taxable year 

14 shall be so included ratably over the 3-taxable 

15 year period beginning with such taxable year. 

16 ‘‘(B) SPECIAL RULE.—For purposes of 

17 subparagraph (A), rules similar to the rules of 

18 subparagraph (E) of section 408A(d)(3) shall 

19 apply. 

20 ‘‘(6) SPECIAL RULES.— 

21 ‘‘(A) EXEMPTION OF DISTRIBUTIONS FROM

22 TRUSTEE TO TRUSTEE TRANSFER AND WITH23 HOLDING RULES.—For purposes of sections 

24 401(a)(31), 402(f), and 3405, qualified oil spill 


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1 distributions shall not be treated as eligible roll2 over distributions. 

3 ‘‘(B) QUALIFIED HURRICANE DISTRIBU4 TIONS TREATED AS MEETING PLAN DISTRIBU5 TION REQUIREMENTS.—For purposes this title, 

6 a qualified hurricane distribution shall be treat7 ed as meeting the requirements of sections 

8 401(k)(2)(B)(i), 403(b)(7)(A)(ii), 403(b)(11), 

9 and 457(d)(1)(A). 

10 ‘‘(b) RECONTRIBUTIONS OF WITHDRAWALS FOR

11 HOME PURCHASES.— 

12 ‘‘(1) RECONTRIBUTIONS.— 

13 ‘‘(A) IN GENERAL.—Any individual who 

14 received a qualified distribution may, during the 

15 applicable period, make one or more contribu16 tions in an aggregate amount not to exceed the 

17 amount of such qualified distribution to an eli18 gible retirement plan (as defined in section 

19 402(c)(8)(B)) of which such individual is a ben20 eficiary and to which a rollover contribution of 

21 such distribution could be made under section 

22 402(c), 403(a)(4), 403(b)(8), or 408(d)(3), as 

23 the case may be. 

24 ‘‘(B) TREATMENT OF REPAYMENTS.— 

25 Rules similar to the rules of subparagraphs (B) 


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1 and (C) of subsection (a)(3) shall apply for pur2 poses of this subsection. 

3 ‘‘(2) QUALIFIED DISTRIBUTION.—For purposes 

4 of this subsection— 

5 ‘‘(A) IN GENERAL.—The term ‘qualified 

6 distribution’ means any distribution— 

7 ‘‘(i) described in section 

8 401(k)(2)(B)(i)(IV), 403(b)(7)(A)(ii) (but 

9 only to the extent such distribution relates 

10 to financial hardship), 403(b)(11)(B), or 

11 72(t)(2)(F), 

12 ‘‘(ii) received after October 19, 2009, 

13 and before April 20, 2010, and 

14 ‘‘(iii) which was to be used to pur15 chase or construct a principal residence in 

16 the State of Florida, Alabama, Mississippi, 

17 Louisiana, or Texas Hurricane Katrina 

18 disaster area, but which was not so pur19 chased or constructed on account of the ex20 plosion on and sinking of the mobile off 

21 shore drilling unit Deepwater Horizon or 

22 the discharge of oil in the Gulf of Mexico 

23 caused by such explosion and sinking. 

24 ‘‘(3) APPLICABLE PERIOD.—For purposes of 

25 this subsection, the term ‘applicable period’ means 


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1 the period beginning on April 20, 2010, and ending 

2 on December 31, 2010. 

3 ‘‘(c) LOANS FROM QUALIFIED PLANS.— 

4 ‘‘(1) INCREASE IN LIMIT ON LOANS NOT TREAT5 ED AS DISTRIBUTIONS.—In the case of any loan 

6 from a qualified employer plan (as defined under 

7 section 72(p)(4)) to a qualified individual made dur8 ing the applicable period— 

9 ‘‘(A) clause (i) of section 72(p)(2)(A) shall 

10 be applied by substituting ‘$100,000’ for 

11 ‘$50,000’, and 

12 ‘‘(B) clause (ii) of such section shall be ap13 plied by substituting ‘the present value of the 

14 nonforfeitable accrued benefit of the employee 

15 under the plan’ for ‘one-half of the present 

16 value of the nonforfeitable accrued benefit of 

17 the employee under the plan’. 

18 ‘‘(2) DELAY OF REPAYMENT.—In the case of a 

19 qualified individual with an outstanding loan on or 

20 after the qualified beginning date from a qualified 

21 employer plan (as defined in section 72(p)(4))— 

22 ‘‘(A) if the due date pursuant to subpara23 graph (B) or (C) of section 72(p)(2) for any re24 payment with respect to such loan occurs dur25 ing the period beginning on the qualified beginVerDate Mar 15 2010 06:24 Jun 25, 2010 Jkt 089200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H5602.IH H5602

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1 ning date and ending on December 31, 2010, 

2 such due date shall be delayed for 1 year, 

3 ‘‘(B) any subsequent repayments with re4 spect to any such loan shall be appropriately 

5 adjusted to reflect the delay in the due date 

6 under paragraph (1) and any interest accruing 

7 during such delay, and 

8 ‘‘(C) in determining the 5-year period and 

9 the term of a loan under subparagraph (B) or 

10 (C) of section 72(p)(2), the period described in 

11 subparagraph (A) shall be disregarded. 

12 ‘‘(3) QUALIFIED INDIVIDUAL.—For purposes of 

13 this subsection, the term ‘qualified individual’ means 

14 any individual whose principal place of abode on 

15 April 20, 2010, is located in the State of Florida, 

16 Alabama, Mississippi, Louisiana, or Texas and who 

17 has sustained an economic loss as a result of the ex18 plosion on and sinking of the mobile off shore drill19 ing unit Deepwater Horizon, the discharge of oil in 

20 the Gulf of Mexico caused by such explosion and 

21 sinking, or the effects of such discharge on the econ22 omy in the areas affected by such discharge. 

23 ‘‘(4) APPLICABLE PERIOD; QUALIFIED BEGIN24 NING DATE.—For purposes of this subsection— 


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1 ‘‘(A) the applicable period is the period be2 ginning on April 20, 2010, and ending on De3 cember 31, 2010, and 

4 ‘‘(B) the qualified beginning date is April 

5 20, 2010. 

6 ‘‘(d) PROVISIONS RELATING TO PLAN AMEND7 MENTS.— 

8 ‘‘(1) IN GENERAL.—If this subsection applies to 

9 any amendment to any plan or annuity contract, 

10 such plan or contract shall be treated as being oper11 ated in accordance with the terms of the plan during 

12 the period described in paragraph (2)(B)(i). 

13 ‘‘(2) AMENDMENTS TO WHICH SUBSECTION AP14 PLIES.— 

15 ‘‘(A) IN GENERAL.—This subsection shall 

16 apply to any amendment to any plan or annuity 

17 contract which is made— 

18 ‘‘(i) pursuant to any provision of this 

19 section, or pursuant to any regulation 

20 issued by the Secretary or the Secretary of 

21 Labor under any provision of this section, 

22 and 

23 ‘‘(ii) on or before the last day of the 

24 first plan year beginning on or after April 


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1 20, 2010, or such later date as the Sec2 retary may prescribe. 

3 In the case of a governmental plan (as defined 

4 in section 414(d)), clause (ii) shall be applied 

5 by substituting the date which is 2 years after 

6 the date otherwise applied under clause (ii). 

7 ‘‘(B) CONDITIONS.—This subsection shall 

8 not apply to any amendment unless— 

9 ‘‘(i) during the period— 

10 ‘‘(I) beginning on the date that 

11 this section or the regulation de12 scribed in subparagraph (A)(i) takes 

13 effect (or in the case of a plan or con14 tract amendment not required by this 

15 section or such regulation, the effec16 tive date specified by the plan), and 

17 ‘‘(II) ending on the date de18 scribed in subparagraph (A)(ii) (or, if 

19 earlier, the date the plan or contract 

20 amendment is adopted), 

21 the plan or contract is operated as if such 

22 plan or contract amendment were in effect, 

23 and 

24 ‘‘(ii) such plan or contract amendment 

25 applies retroactively for such period.’’. 


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1 (b) CONFORMING AMENDMENT.—The table of sec2 tions for subchapter Y of chapter 1 of such Code is amend3 ed by adding at the end the following new item: 

‘‘PART IV—GULF OIL SPILL

‘‘Sec. 1400V-1. Special rules for use of retirement funds.’’. 

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

5 this Act shall apply to distributions on or after April 20, 

6 2010. 

Æ 


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