I 
117TH CONGRESS 
1ST SESSION H. R. 6241 
To amend the Internal Revenue Code of 1986 to provide for rules for 
the use of retirement funds in connection with federally declared disasters. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 9, 2021 
Mr. THOMPSON of California (for himself and Mr. KELLY of Pennsylvania) 
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 rules for the use of retirement funds in connection 
with federally declared disasters. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SPECIAL RULES FOR USE OF RETIREMENT 
FUNDS IN CONNECTION WITH QUALIFIED 
FEDERALLY DECLARED DISASTERS. 
(a) TAX-FAVORED WITHDRAWALS FROM RETIRE-
MENT PLANS.— 
(1) IN
GENERAL.—Paragraph (2) of section 
72(t) of the Internal Revenue Code of 1986 is 
VerDate Sep 11 2014 
03:38 Dec 18, 2021
Jkt 029200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H6241.IH
H6241
pbinns on DSKJLVW7X2PROD with BILLS
amended by adding at the end the following new 
subparagraph: 
‘‘(I) DISTRIBUTIONS
FROM
RETIREMENT 
PLANS IN CONNECTION WITH FEDERALLY DE-
CLARED DISASTERS.—Any qualified disaster re-
covery distribution.’’. 
(2) QUALIFIED DISASTER RECOVERY DISTRIBU-
TION.—Section 72(t) of such Code is amended by 
adding at the end the following new paragraph: 
‘‘(11) QUALIFIED
DISASTER
RECOVERY
DIS-
TRIBUTION.—For purposes of paragraph (2)(I)— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), the term ‘qualified disaster 
recovery distribution’ means any distribution 
made— 
‘‘(i) on or after the first day of the in-
cident period of a qualified disaster and 
before the date that is 180 days after the 
applicable date with respect to such dis-
aster, and 
‘‘(ii) to an individual whose principal 
place of abode at any time during the inci-
dent period of such qualified disaster is lo-
cated in the qualified disaster area with re-
spect to such qualified disaster and who 
VerDate Sep 11 2014 
03:38 Dec 18, 2021
Jkt 029200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H6241.IH
H6241
pbinns on DSKJLVW7X2PROD with BILLS
has sustained an economic loss by reason 
of such qualified disaster. 
‘‘(B) AGGREGATE DOLLAR LIMITATION.— 
‘‘(i) IN
GENERAL.—For purposes of 
this subsection, the aggregate amount of 
distributions received by an individual 
which may be treated as qualified disaster 
recovery distributions with respect to any 
qualified disaster shall not exceed the ex-
cess (if any) of— 
‘‘(I) $100,000, over 
‘‘(II) 
the 
sum 
of 
aggregate 
amounts treated as qualified disaster 
recovery distributions with respect to 
such qualified disaster received by 
such individual. 
‘‘(ii) TREATMENT OF PLAN DISTRIBU-
TIONS.—If a distribution to an individual 
would (without regard to clause (i)) be a 
qualified disaster recovery distribution, a 
plan shall not be treated as violating any 
requirement of this title merely because 
the plan treats such distribution as a 
qualified disaster recovery distribution, un-
less the aggregate amount of such distribu-
VerDate Sep 11 2014 
03:38 Dec 18, 2021
Jkt 029200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H6241.IH
H6241
pbinns on DSKJLVW7X2PROD with BILLS
tions from all plans maintained by the em-
ployer (and any member of any controlled 
group which includes the employer) to such 
individual exceeds $100,000 with respect 
to the same qualified disaster. 
‘‘(iii) CONTROLLED GROUP.—For pur-
poses 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. 
‘‘(iv) SPECIAL RULE FOR INDIVIDUALS 
AFFECTED
BY
MORE
THAN
ONE
DIS-
ASTER.—The limitation of clause (i) shall 
be applied separately with respect to dis-
tributions made with respect to each quali-
fied disaster. 
‘‘(C) AMOUNT DISTRIBUTED MAY BE RE-
PAID.— 
‘‘(i) IN
GENERAL.—Any individual 
who receives a qualified disaster recovery 
distribution may, at any time during the 3- 
year period beginning on the day after the 
date on which such distribution was re-
ceived, make one or more contributions in 
an aggregate amount not to exceed the 
VerDate Sep 11 2014 
03:38 Dec 18, 2021
Jkt 029200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H6241.IH
H6241
pbinns on DSKJLVW7X2PROD with BILLS
amount of such distribution to an eligible 
retirement plan of which such individual is 
a beneficiary and to which a rollover con-
tribution 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. 
‘‘(ii) TREATMENT OF REPAYMENTS OF 
DISTRIBUTIONS
FROM
ELIGIBLE
RETIRE-
MENT
PLANS
OTHER
THAN
IRAS.—For 
purposes of this title, if a contribution is 
made pursuant to clause (i) with respect to 
a qualified disaster recovery distribution 
from a plan other than an individual re-
tirement plan, then the taxpayer shall, to 
the extent of the amount of the contribu-
tion, be treated as having received the 
qualified disaster recovery distribution in 
an eligible rollover distribution (as defined 
in section 402(c)(4)) and as having trans-
ferred the amount to the eligible retire-
ment plan in a direct trustee to trustee 
transfer within 60 days of the distribution. 
‘‘(iii) TREATMENT
OF
REPAYMENTS 
FOR
DISTRIBUTIONS
FROM
IRAS.—For 
VerDate Sep 11 2014 
03:38 Dec 18, 2021
Jkt 029200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H6241.IH
H6241
pbinns on DSKJLVW7X2PROD with BILLS
purposes of this title, if a contribution is 
made pursuant to clause (i) with respect to 
a qualified disaster recovery distribution 
from an individual retirement plan, then, 
to the extent of the amount of the con-
tribution, the qualified disaster recovery 
distribution shall be treated as a distribu-
tion described in section 408(d)(3) and as 
having been transferred to the eligible re-
tirement plan in a direct trustee to trustee 
transfer within 60 days of the distribution. 
‘‘(D) INCOME INCLUSION SPREAD OVER 3- 
YEAR PERIOD.— 
‘‘(i) IN GENERAL.—In the case of any 
qualified disaster recovery distribution, un-
less the taxpayer elects not to have this 
subparagraph 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. 
‘‘(ii) SPECIAL RULE.—For purposes of 
clause (i), rules similar to the rules of sub-
paragraph (E) of section 408A(d)(3) shall 
apply. 
VerDate Sep 11 2014 
03:38 Dec 18, 2021
Jkt 029200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H6241.IH
H6241
pbinns on DSKJLVW7X2PROD with BILLS
‘‘(E) QUALIFIED DISASTER.—For purposes 
of this paragraph and paragraph (8), the term 
‘qualified disaster’ means any disaster with re-
spect to which a major disaster has been de-
clared by the President under section 401 of 
the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act after December 31, 
2020. 
‘‘(F) OTHER DEFINITIONS.—For purposes 
of this paragraph and paragraph (8)— 
‘‘(i) QUALIFIED DISASTER AREA.— 
‘‘(I) IN
GENERAL.—The term 
‘qualified disaster area’ means, with 
respect to any qualified disaster, the 
area with respect to which the major 
disaster was declared under the Rob-
ert T. Stafford Disaster Relief and 
Emergency Assistance Act. 
‘‘(II) EXCEPTIONS.—Such term 
shall not include any area which is a 
qualified disaster area solely by reason 
of section 301 of the Taxpayer Cer-
tainty and Disaster Tax Relief Act of 
2020. 
VerDate Sep 11 2014 
03:38 Dec 18, 2021
Jkt 029200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H6241.IH
H6241
pbinns on DSKJLVW7X2PROD with BILLS
‘‘(ii) INCIDENT
PERIOD.—The term 
‘incident period’ means, with respect to 
any qualified disaster, the period specified 
by the Federal Emergency Management 
Agency as the period during which such 
disaster occurred. 
‘‘(iii) APPLICABLE DATE.—The term 
‘applicable date’ means the latest of— 
‘‘(I) the date of the enactment of 
this paragraph, 
‘‘(II) the first day of the incident 
period with respect to the qualified 
disaster, or 
‘‘(III) the date of the disaster 
declaration with respect to the quali-
fied disaster. 
‘‘(iv) ELIGIBLE RETIREMENT PLAN.— 
The term ‘eligible retirement plan’ shall 
have the meaning given such term by sec-
tion 402(c)(8)(B). 
‘‘(G) SPECIAL RULES.— 
‘‘(i) EXEMPTION
OF
DISTRIBUTIONS 
FROM
TRUSTEE
TO
TRUSTEE
TRANSFER 
AND WITHHOLDING RULES.—For purposes 
of sections 401(a)(31), 402(f), and 3405, 
VerDate Sep 11 2014 
03:38 Dec 18, 2021
Jkt 029200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H6241.IH
H6241
pbinns on DSKJLVW7X2PROD with BILLS
qualified disaster recovery distributions 
shall not be treated as eligible rollover dis-
tributions. 
‘‘(ii) QUALIFIED DISASTER RECOVERY 
DISTRIBUTIONS
TREATED
AS
MEETING 
PLAN
DISTRIBUTION
REQUIREMENTS.— 
For purposes this title, a qualified disaster 
recovery 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).’’. 
(3) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to distributions with 
respect to disasters the incident beginning date (as 
defined in section 72(t)(11)(F)(i) of the Internal 
Revenue Code of 1986, as added by this subsection) 
for which is after December 27, 2020. 
(b) RECONTRIBUTIONS
OF
WITHDRAWALS
FOR 
HOME PURCHASES.— 
(1) INDIVIDUAL
RETIREMENT
PLANS.—Para-
graph (8) of section 72(t) of the Internal Revenue 
Code of 1986 is amended by adding at the end the 
following new subparagraph: 
‘‘(F) RECONTRIBUTIONS.— 
‘‘(i) GENERAL RULE.— 
VerDate Sep 11 2014 
03:38 Dec 18, 2021
Jkt 029200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H6241.IH
H6241
pbinns on DSKJLVW7X2PROD with BILLS
‘‘(I) IN
GENERAL.—Any indi-
vidual who received a qualified dis-
tribution may, during the applicable 
period, make one or more contribu-
tions 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 indi-
vidual is a beneficiary and to which a 
rollover contribution of such distribu-
tion could be made under section 
402(c), 
403(a)(4), 
403(b)(8), 
or 
408(d)(3), as the case may be. 
‘‘(II) TREATMENT
OF
REPAY-
MENTS.—Rules similar to the rules of 
clauses (ii) and (iii) of paragraph 
(11)(C) shall apply for purposes of 
this subsection. 
‘‘(ii) QUALIFIED DISTRIBUTION.—For 
purposes of this subparagraph, the term 
‘qualified distribution’ means any distribu-
tion— 
‘‘(I) which is a qualified first- 
time homebuyer distribution, 
VerDate Sep 11 2014 
03:38 Dec 18, 2021
Jkt 029200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H6241.IH
H6241
pbinns on DSKJLVW7X2PROD with BILLS
‘‘(II) which was to be used to 
purchase or construct a principal resi-
dence in a qualified disaster area, but 
which was not so used on account of 
the qualified disaster with respect to 
such area, and 
‘‘(III) which was received during 
the period beginning on the date 
which is 180 days before the first day 
of the incident period of such qualified 
disaster and ending on the date which 
is 30 days after the last day of such 
incident period. 
‘‘(iii) APPLICABLE PERIOD.—For pur-
poses of this subparagraph, the term ‘ap-
plicable period’ means, in the case of a 
principal residence in a qualified disaster 
area with respect to any qualified disaster, 
the period beginning on the first day of the 
incident period of such qualified disaster 
and ending on the date which is 180 days 
after the applicable date with respect to 
such disaster.’’. 
(2) QUALIFIED PLANS.—Subsection (c) of sec-
tion 402 of the Internal Revenue Code of 1986 is 
VerDate Sep 11 2014 
03:38 Dec 18, 2021
Jkt 029200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H6241.IH
H6241
pbinns on DSKJLVW7X2PROD with BILLS
amended by adding at the end the following new 
paragraph: 
‘‘(12) RECONTRIBUTIONS
OF
WITHDRAWALS 
FOR HOME PURCHASES.— 
‘‘(A) GENERAL RULE.— 
‘‘(i) 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 paragraph (8)(B)) of which 
such individual is a beneficiary and to 
which a rollover contribution of such dis-
tribution could be made under subsection 
(c) or section 403(a)(4), 403(b)(8), or 
408(d)(3), as the case may be. 
‘‘(ii) TREATMENT OF REPAYMENTS.— 
Rules similar to the rules of clauses (ii) 
and (iii) of section 72(t)(11)(C) shall apply 
for purposes of this subsection. 
‘‘(B) 
QUALIFIED
DISTRIBUTION.—For 
purposes of this paragraph, the term ‘qualified 
distribution’ means any distribution— 
VerDate Sep 11 2014 
03:38 Dec 18, 2021
Jkt 029200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H6241.IH
H6241
pbinns on DSKJLVW7X2PROD with BILLS
‘‘(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), or 403(b)(11)(B), 
‘‘(ii) which was to be used to purchase 
or construct a principal residence in a 
qualified disaster area, but which was not 
so used on account of the qualified disaster 
with respect to such area, and 
‘‘(iii) which was received during the 
period beginning on the date which is 180 
days before the first day of the incident pe-
riod of such qualified disaster and ending 
on the date which is 30 days after the last 
day of such incident period. 
‘‘(C) DEFINITIONS.—For purposes of this 
paragraph— 
‘‘(i) the terms ‘qualified disaster’, 
‘qualified disaster area’, and ‘incident pe-
riod’ have the meaning given such terms 
under section 72(t)(11), and 
‘‘(ii) the term ‘applicable period’ has 
the meaning given such term under section 
72(t)(8)(F).’’. 
VerDate Sep 11 2014 
03:38 Dec 18, 2021
Jkt 029200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H6241.IH
H6241
pbinns on DSKJLVW7X2PROD with BILLS