I 
110TH CONGRESS 
1ST SESSION H. R. 2873 
To amend the Internal Revenue Code of 1986 to exempt disaster relief 
distributions from retirement plans from the penalty for early withdrawal. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 26, 2007 
Mr. WELDON of Florida (for himself, Mr. WEXLER, Mr. YOUNG of Florida, 
Mr. HASTINGS of Florida, Ms. ROS-LEHTINEN, Mr. LINCOLN DIAZ- 
BALART of Florida, Ms. GINNY BROWN-WAITE of Florida, Mr. MARIO 
DIAZ-BALART of Florida, Mr. MILLER of Florida, Mr. FEENEY, Mr. 
CRENSHAW, and Mr. BILIRAKIS) 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 exempt 
disaster relief distributions from retirement plans from 
the penalty for early withdrawal. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Affordable Home-
owners Insurance Act of 2007’’. 
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SEC. 2. DISTRIBUTIONS FROM RETIREMENT PLANS FOR 
DISASTER RELIEF NOT SUBJECT TO PENALTY 
FOR EARLY WITHDRAWAL. 
(a) IN GENERAL.—Paragraph (2) of section 72(t) of 
the Internal Revenue Code of 1986 (relating to subsection 
not to apply to certain distributions) is amended by adding 
at the end the following new subparagraph: 
‘‘(H) DISTRIBUTIONS FROM RETIREMENT 
PLANS FOR DISASTER RELIEF.— 
‘‘(i) IN GENERAL.—Any qualified dis-
aster relief distribution. 
‘‘(ii) AGGREGATE
DOLLAR
LIMITA-
TION.—For purposes of this subparagraph, 
the aggregate amount of distributions re-
ceived by an individual which may be treat-
ed as qualified disaster relief distributions 
for any taxable year shall not exceed the 
excess (if any) of— 
‘‘(I) $100,000, over 
‘‘(II) 
the 
aggregate 
amounts 
treated as qualified disaster relief dis-
tributions received by such individual 
for all prior taxable years. 
‘‘(iii) TREATMENT
OF
PLAN
DIS-
TRIBUTIONS.—If a distribution to an indi-
vidual would be a qualified disaster relief 
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distribution, a plan shall not be treated as 
violating any requirement of this title 
merely because the plan treats such dis-
tribution as a qualified disaster relief dis-
tribution, unless the aggregate amount of 
such distributions from all plans main-
tained by the employer (and any member 
of any controlled group which includes the 
employer) 
to 
such 
individual 
exceeds 
$100,000. For purposes of the preceding 
sentence, the term ‘controlled group’ 
means any group treated as a single em-
ployer under subsection (b), (c), (m), or 
(o) of section 414. 
‘‘(iv) AMOUNT DISTRIBUTED MAY BE 
REPAID.— 
‘‘(I) IN
GENERAL.—Any indi-
vidual who receives a qualified dis-
aster relief 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 eli-
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gible retirement plan of which such 
individual is a beneficiary and to 
which a rollover contribution of such 
distribution could be made under sec-
tion 402(c), 403(a)(4), 403(b)(8), 
408(d)(3), or 457(e)(16), as the case 
may be. 
‘‘(II) TREATMENT
OF
REPAY-
MENTS OF DISTRIBUTIONS FROM ELI-
GIBLE
RETIREMENT
PLANS
OTHER 
THAN
IRAS.—For purposes of this 
title, if a contribution is made pursu-
ant to subparagraph (A) with respect 
to a qualified disaster relief distribu-
tion from an eligible retirement plan 
other than an individual retirement 
plan, then the taxpayer shall, to the 
extent of the amount of the contribu-
tion, be treated as having received the 
qualified disaster relief distribution in 
an eligible rollover distribution (as de-
fined in section 402(c)(4)) and as 
having transferred the amount to the 
eligible retirement plan in a direct 
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trustee to trustee transfer within 60 
days of the distribution. 
‘‘(III) TREATMENT
OF
REPAY-
MENTS
FOR
DISTRIBUTIONS
FROM 
IRAS.—For purposes of this title, if a 
contribution is made pursuant to sub-
paragraph (A) with respect to a quali-
fied disaster relief distribution from 
an individual retirement plan (as de-
fined by section 7701(a)(37)), then, to 
the extent of the amount of the con-
tribution, the qualified disaster relief 
distribution shall be treated as a dis-
tribution 
described 
in 
section 
408(d)(3) and as having been trans-
ferred to the eligible retirement plan 
in a direct trustee to trustee transfer 
within 60 days of the distribution. 
‘‘(v) QUALIFIED
DISASTER
RELIEF 
DISTRIBUTION.—For purposes of this sub-
paragraph, the term ‘qualified disaster re-
lief distribution’ means a distribution 
made— 
‘‘(I) within 1 year after the date 
on which a major disaster is declared 
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under section 401 of the Robert T. 
Stafford Disaster Assistance Relief 
and Emergency Assistance Act, 
‘‘(II) on account of such disaster, 
and 
‘‘(III) to an individual whose 
principal place of abode is in the area 
with respect to which such disaster 
was declared and who has sustained 
an economic loss by reason of such 
disaster. 
‘‘(vi) INCOME
INCLUSION
SPREAD 
OVER 3-YEAR PERIOD.— 
‘‘(I) IN GENERAL.—In the case 
of any qualified disaster relief dis-
tribution, unless the taxpayer elects 
not to have this clause apply for any 
taxable year, any amount required to 
be included in gross income for such 
taxable year shall be so included rat-
ably over the 3-taxable year period be-
ginning with such taxable year. 
‘‘(II) APPLICABLE
RULES.—For 
purposes of subclause (I), rules simi-
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lar to the rules of subparagraph (E) 
of section 408A(d)(3) shall apply.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply with respect to disasters declared 
after the date of the enactment of this Act. 
(c) PROVISIONS
RELATING
TO
PLAN
AMEND-
MENTS.— 
(1) IN GENERAL.—If this subsection applies to 
any amendment to any plan or annuity contract, 
such plan or contract shall be treated as being oper-
ated in accordance with the terms of the plan during 
the period described in paragraph (2)(B)(i). 
(2) AMENDMENTS TO WHICH SUBSECTION AP-
PLIES.— 
(A) IN
GENERAL.—This subsection shall 
apply to any amendment to any plan or annuity 
contract which is made— 
(i) pursuant to any provision of this 
section, or pursuant to any regulation 
issued by the Secretary of the Treasury or 
the Secretary of Labor under any provision 
of this section, and 
(ii) on or before the last day of the 
first plan year beginning on or after Janu-
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ary 1, 2009, or such later date as the Sec-
retary may prescribe. 
In the case of a governmental plan (as defined 
in section 414(d)), clause (ii) shall be applied 
by substituting the date which is 2 years after 
the date otherwise applied under clause (ii). 
(B) CONDITIONS.—This subsection shall 
not apply to any amendment unless— 
(i) during the period— 
(I) beginning on the date that 
this section or the regulation de-
scribed in subparagraph (A)(i) takes 
effect (or in the case of a plan or con-
tract amendment not required by this 
section or such regulation, the effec-
tive date specified by the plan), and 
(II) ending on the date described 
in subparagraph (A)(ii) (or, if earlier, 
the date the plan or contract amend-
ment is adopted), 
the plan or contract is operated as if such 
plan or contract amendment were in effect; 
and such plan or contract amendment ap-
plies retroactively for such period. 
Æ 
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