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‘‘(iv) in the case of an eligible deferred
compensation plan established and main-
tained by an employer described in sub-
section (e)(1)(A), when the participant sus-
tains a loss as a result of a major disaster
declared under section 401 of the Robert T.
Stafford Disaster Relief and Emergency As-
sistance Act by reason of Hurricane
Katrina (but only to the extent provided in
section 72(t)(2)(G)),’’.
(d) EFFECTIVE DATE.—The amendments made by this
section shall apply to distributions received after August
28, 2005.
SEC. 102. INCOME AVERAGING FOR DISASTER-RELIEF DIS-
TRIBUTIONS 
RELATED 
TO 
HURRICANE
KATRINA.
(a) IN GENERAL.—In the case of any qualified dis-
aster-relief distribution (within the meaning of section
72(t)(2)(G) of the Internal Revenue Code of 1986) from a
qualified retirement plan (as defined in section 4974(c) of
such Code) to a qualified individual, unless the taxpayer
elects not to have this section 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.
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(b) SPECIAL RULES.—
(1) APPLICATION
TO
GOVERNMENTAL
SECTION
457 PLANS.—In determining whether any distribution
is a qualified disaster-relief distribution (as so de-
fined) for purposes of this section, an eligible deferred
compensation plan (as defined in section 457(b) of
such Code) maintained by an employer described in
section 457(e)(1)(A) of such Code shall be treated as
a qualified retirement plan (as so defined)
(2) CERTAIN RULES TO APPLY.—Rules similar to
the rules of subparagraph (E) of section 408A(d)(3)
of such Code shall apply for purposes of this section.
(c) QUALIFIED INDIVIDUAL.—For purposes of this sec-
tion, the term ‘‘qualified individual’’ means an individual
who has sustained a loss as a result of the major disaster
declared under section 401 of the Robert T. Stafford Dis-
aster Relief and Emergency Assistance Act (42 U.S.C.
5170) in connection with Hurricane Katrina and who has
a principal place of abode immediately before the declara-
tion in a Hurricane Katrina disaster area.
SEC. 103. RECONTRIBUTIONS OF WITHDRAWALS FOR HOME
PURCHASES CANCELLED DUE TO HURRICANE
KATRINA.
(a) RECONTRIBUTIONS.—
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(1) IN GENERAL.—Any individual who received
a qualified distribution may, at any time during the
6-month period beginning on the day after the dis-
aster declaration date, 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
the Internal Revenue Code of 1986) of which such in-
dividual 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), or 408(d)(3) of
such Code, as the case may be.
(2) TREATMENT OF REPAYMENTS.—
(A) TREATMENT OF REPAYMENTS FOR DIS-
TRIBUTIONS FROM ELIGIBLE RETIREMENT PLANS
OTHER THAN IRAS.—For purposes of the Inter-
nal Revenue Code of 1986, if a contribution is
made pursuant to paragraph (1) with respect to
a qualified distribution from an eligible retire-
ment plan (as so defined) other than an indi-
vidual retirement plan (as defined in section
7701(a)(37) of such Code), then the taxpayer
shall, to the extent of the amount of the contribu-
tion, be treated as having received the qualified
distribution in an eligible rollover distribution
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(as defined in section 402(c)(4) of such Code)
and as having transferred the amount to the eli-
gible retirement plan in a direct trustee to trust-
ee transfer within 60 days of the distribution.
(B) TREATMENT OF REPAYMENTS FOR DIS-
TRIBUTIONS FROM IRAS.—For purposes of the
Internal Revenue Code of 1986, if a contribution
is made pursuant to paragraph (1) with respect
to a qualified distribution from an individual
retirement plan (as so defined), then, to the ex-
tent of the amount of the contribution, the quali-
fied distribution shall be treated as a distribu-
tion described in section 408(d)(3) of such Code
and as having been transferred to the eligible re-
tirement plan (as so defined) in a direct trustee
to trustee transfer within 60 days of the distribu-
tion.
(b) DEFINITIONS.—For purposes of this section—
(1) 
QUALIFIED
DISTRIBUTION.—The 
term
‘‘qualified distribution’’ means any distribution—
(A) described in section 401(k)(2)(B)(i)(IV),
403(b)(7)(A)(ii) (but only to the extent such dis-
tribution 
relates 
to 
financial 
hardship),
403(b)(11)(B), or 72(t)(2)(F) of the Internal
Revenue Code of 1986,
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(B) received after February 28, 2005, and
before August 29, 2005, and
(C) which was to be used to purchase or
construct a principal residence in a Hurricane
Katrina disaster area, but which was not so pur-
chased or constructed.
(2) DISASTER
DECLARATION
DATE.—The term
‘‘disaster declaration date’’ means the date on which
the President designated the area as a Hurricane
Katrina disaster area.
SEC. 104. LOANS FROM QUALIFIED PLANS TO VICTIMS OF
HURRICANE KATRINA.
(a) INCREASE IN LIMIT ON LOANS NOT TREATED AS
DISTRIBUTIONS.—In the case of any loan from a qualified
employer plan (as defined under section 72(p)(4) of the In-
ternal Revenue Code of 1986) to a qualified individual (as
defined in section 102(c)) made after the date of enactment
of this Act and before the date which is 1 year after the
disaster declaration date (as defined in section 103(b)(2))—
(1) clause (i) of section 72(p)(2)(A) of such Code
shall be applied by substituting ‘‘$100,000’’ for
‘‘$50,000’’, and
(2) clause (ii) of such section shall be applied by
substituting ‘‘the present value of the nonforfeitable
accrued benefit of the employee under the plan’’ for