SEC. 2. WITHDRAWALS FOR CERTAIN EMERGENCY EX-
PENSES. 
(a) IN GENERAL.—Paragraph (2) of section 72(t) of 
the Internal Revenue Code of 1986 is amended by adding 
at the end the following new subparagraph: 
‘‘(I) DISTRIBUTIONS FOR CERTAIN EMER-
GENCY EXPENSES.— 
‘‘(i) IN
GENERAL.—Any emergency 
personal expense distribution. 
‘‘(ii) ANNUAL LIMITATION.—Not more 
than 1 distribution per calendar year may 
be treated as an emergency personal ex-
pense distribution by any individual. 
‘‘(iii) 
DOLLAR
LIMITATION.—The 
amount which may be treated as an emer-
gency personal expense distribution by any 
individual in any calendar year shall not 
exceed the lesser of $1,000 or an amount 
equal to the excess of— 
‘‘(I) the individual’s total non-
forfeitable accrued benefit under the 
plan (the individual’s total interest in 
the plan in the case of an individual 
retirement plan), determined as of the 
date of each such distribution, over 
‘‘(II) $1,000. 
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‘‘(iv) EMERGENCY
PERSONAL
EX-
PENSE
DISTRIBUTION.—For purposes of 
this subparagraph, the term ‘emergency 
personal expense distribution’ means any 
distribution from an applicable eligible re-
tirement plan (as defined in subparagraph 
(H)(vi)(I)) to an individual for purposes of 
meeting unforeseeable or immediate finan-
cial needs relating to necessary personal or 
family emergency expenses. The adminis-
trator of an applicable eligible retirement 
plan may rely on an employee’s certifi-
cation that the employee satisfies the con-
ditions of the preceding sentence in deter-
mining whether any distribution is an 
emergency personal expense distribution. 
‘‘(v) TREATMENT OF PLAN DISTRIBU-
TIONS.—If a distribution to an individual 
would (without regard to clause (iii)) be an 
emergency personal expense distribution, a 
plan shall not be treated as failing to meet 
any requirement of this title merely be-
cause the plan treats the distribution as an 
emergency personal expense distribution, 
unless the aggregate amount of such dis-
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tributions from all plans maintained by the 
employer (and any member of any con-
trolled group which includes the employer, 
determined as provided in subparagraph 
(H)(iv)(II)) to such individual exceeds the 
limitation determined under clause (iii). 
‘‘(vi) AMOUNT DISTRIBUTED MAY BE 
REPAID.— 
‘‘(I) IN
GENERAL.—Any indi-
vidual who receives an emergency per-
sonal expense distribution may, at any 
time during the 3-year period begin-
ning 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 ap-
plicable 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. 
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‘‘(II) LIMITATION ON CONTRIBU-
TIONS TO APPLICABLE ELIGIBLE RE-
TIREMENT
PLANS
OTHER
THAN 
IRAS.—The aggregate amount of con-
tributions made by an individual 
under subclause (I) to any applicable 
eligible retirement plan which is not 
an individual retirement plan shall not 
exceed the aggregate amount of emer-
gency personal expense distributions 
which are made from such plan to 
such individual. Subclause (I) shall 
not apply to contributions to any ap-
plicable eligible retirement plan which 
is not an individual retirement plan 
unless the individual is eligible to 
make contributions (other than those 
described in subclause (I)) to such ap-
plicable eligible retirement plan. 
‘‘(III) TREATMENT
OF
REPAY-
MENTS OF DISTRIBUTIONS FROM AP-
PLICABLE
ELIGIBLE
RETIREMENT 
PLANS OTHER THAN IRAS.—If a con-
tribution is made under subclause (I) 
with respect to an emergency personal 
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expense distribution from an applica-
ble 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 such distribution in 
an eligible rollover distribution (as de-
fined in section 402(c)(4)) and as 
having transferred the amount to the 
applicable eligible retirement plan in a 
direct trustee to trustee transfer with-
in 60 days of the distribution. 
‘‘(IV) TREATMENT
OF
REPAY-
MENTS
FOR
DISTRIBUTIONS
FROM 
IRAS.—If a contribution is made 
under subclause (I) with respect to an 
emergency personal expense distribu-
tion from an individual retirement 
plan, then, to the extent of the 
amount of the contribution, such dis-
tribution shall be treated as a dis-
tribution 
described 
in 
section 
408(d)(3) and as having been trans-
ferred to the applicable eligible retire-
ment plan in a direct trustee to trust-
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ee transfer within 60 days of the dis-
tribution. 
‘‘(vii) LIMITATION
ON
SUBSEQUENT 
DISTRIBUTIONS.—If a distribution is treat-
ed as an emergency personal expense dis-
tribution in any calendar year with respect 
to a plan, no amount may be treated as 
such a distribution in any subsequent cal-
endar year with respect to such plan un-
less— 
‘‘(I) such previous distribution is 
fully repaid pursuant to clause (vi) to 
such plan, or 
‘‘(II) the aggregate of the elective 
deferrals and employee contributions 
to the plan (the total amounts con-
tributed to the plan in the case of an 
individual retirement plan) subsequent 
to such previous distribution is at 
least equal to the amount of such pre-
vious distribution which has not been 
so repaid. 
‘‘(viii) SPECIAL RULES.—Rules simi-
lar to the rules of subclauses (II) and (IV) 
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of subparagraph (H)(vi) shall apply to any 
emergency personal expense distribution.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to distributions made after Decem-
ber 31, 2021. 
Æ 
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