I 
109TH CONGRESS 
1ST SESSION H. R. 3741 
To amend the Internal Revenue Code to allow a one-time emergency, penalty 
free withdrawal, from a qualified investment retirement account. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 13, 2005 
Mr. DAVIS of Kentucky (for himself and Mr. PICKERING) introduced the 
following bill; which was referred to the Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code to allow a one-time 
emergency, penalty free withdrawal, from a qualified in-
vestment retirement account. 
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 ‘‘Disaster Victims’ Sav-
ings Access Act’’. 
SEC. 2. WAIVER OF EARLY WITHDRAWAL PENALTY. 
The Internal Revenue Code Section 72(t)(2) (26 
U.S.C. 72(t)(2)) is amended by adding at the end the fol-
lowing new subparagraph: 
‘‘(G) DISASTER AND EMERGENCY.—
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‘‘(i) A one time distribution to an em-
ployee whose domicile, place of business, or 
principal place of employment is located in 
a county enumerated in a Presidentially 
declared disaster or emergency. 
‘‘(I) A qualified distribution as 
defined in section 72(t)(2)(G)(i) is 
limited to fifty percent of the amount 
in the qualified retirement plan ac-
count of $250,000, whichever is great-
er. 
‘‘(ii) Notwithstanding any other sec-
tion of the Internal Revenue Code, a quali-
fied distribution as defined in section 
72(t)(2)(G)(i) and satisfying the require-
ment in section 72(t)(2)(G)(i)(I) shall be 
divided evenly over five years for the pur-
pose of assessing tax on gross income as 
defined in section 61. 
‘‘(iii) A qualified distribution as de-
fined in section 72(t)(2)(G)(i) is only per-
mitted within three years of the date of the 
Presidential declaration. 
‘‘(iv) 
PRESIDENTIALLY
DECLARED 
DISASTER.—For purposes of this sub-
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section, the term ‘Presidentially declared 
disaster’ means any Presidential declara-
tion as defined within the Robert T. Staf-
ford Disaster Relief and Emergency Assist-
ance Act.’’. 
SEC. 3. CATCH-UP ALLOWED. 
(a) The Internal Revenue Code section 414(v) (26 
U.S.C. 414(v)) is amended by adding ‘‘and survivors of 
disasters’’ after ‘‘Catch-up contributions for individuals 
age 50 or over’’. 
(b) The Internal Revenue Code section 414(v) (26 
U.S.C. 414(v)) is amended by adding at the end the fol-
lowing new subparagraph: 
‘‘(7) DISASTER VICTIM ELIGIBLE.— 
‘‘(A) Notwithstanding any other provision 
of the Internal Revenue Code, a plan partici-
pant who received a qualified distribution under 
section 72(t)(2)(G) is eligible to re-contribute 
the full amount withdrawn within five years 
from the distribution. If, after five years, the 
plan participant has not re-contributed the full 
amount, the plan participant may continue to 
make catch-up contributions in the same man-
ner and subject to the same rules as a plan par-
ticipant age 50 or over until such time as the
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amount of the emergency withdrawal has been 
re-contributed. 
‘‘(i) This eligibility for catch-up con-
tributions is limited to the amount of the 
qualified distribution the plan participant 
received under section 72(t)(2)(G).’’. 
SEC. 4. EFFECTIVE DATE. 
The provisions of this Act shall take effect on the day 
of enactment. 
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