I
106TH CONGRESS
1ST SESSION
H. R. 3215
To amend the Internal Revenue Code of 1986 to allow penalty-free distribu-
tions from qualified retirement plans of individuals residing in Presi-
dentially declared disaster areas and to allow relief from certain limita-
tions on the deductibility of casualty losses sustained in such disaster
areas.
IN THE HOUSE OF REPRESENTATIVES
NOVEMBER 3, 1999
Mr. SISISKY (for himself, Mr. PICKETT, Mr. SCOTT, and Mr. BATEMAN) intro-
duced the following bill; which was referred to the Committee on Ways
and Means
A BILL
To amend the Internal Revenue Code of 1986 to allow pen-
alty-free distributions from qualified retirement plans of
individuals residing in Presidentially declared disaster
areas and to allow relief from certain limitations on
the deductibility of casualty losses sustained in such dis-
aster areas.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. PENALTY-FREE DISTRIBUTIONS FROM QUALI-
FIED RETIREMENT PLANS OF INDIVIDUALS
RESIDING IN PRESIDENTIALLY DECLARED
DISASTER AREAS.
(a) IN GENERAL.—Section 72(t)(2) of the Internal
Revenue Code of 1986 (relating to exceptions to 10-per-
cent additional tax on early distributions) is amended by
adding at the end the following new subparagraph:
‘‘(G) DISTRIBUTIONS
FOR
DISASTER-RE-
LATED
EXPENSES.—Distributions which are
qualified disaster-related distributions.’’.
(b) 
QUALIFIED
DISASTER-RELATED
DISTRIBU-
TIONS.—Section 72(t) of the Internal Revenue Code of
1986 is amended by adding at the end the following new
paragraph:
‘‘(9) QUALIFIED DISASTER-RELATED DISTRIBU-
TIONS.—For purposes of paragraph (2)(G)—
‘‘(A) IN
GENERAL.—The term ‘qualified
disaster-related distribution’ means any pay-
ment or distribution received by an individual
who was residing in a disaster area on the date
of the determination referred to in subpara-
graph (B) and who owned property that was
damaged in the disaster covered by the deter-
mination, to the extent that the payment or dis-
tribution is used by such individual within 90
days of the payment or distribution for pur-
poses of repairing or replacing the damaged
property. Such term shall only include any pay-
ment or distribution which is made during the
1-year period beginning on the date of the de-
termination referred to in subparagraph (B).
‘‘(B) DISASTER AREA.—The term ‘disaster
area’ means an area determined by the Presi-
dent to warrant assistance by the Federal Gov-
ernment under the Robert T. Stafford Disaster
Relief and Emergency Assistance Act.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to payments and distributions re-
ceived after July 31, 1999, by individuals residing in areas
warranting assistance as determined by the President
after such date.
SEC. 2. CASUALTY LOSS RELIEF.
(a) CASUALTY LOSS DEDUCTION
FOR DISASTER
LOSS ALLOWED WHETHER OR NOT IT EXCEEDS 10 PER-
CENT OF ADJUSTED GROSS INCOME.—Subsection (i) of
section 165 of the Internal Revenue Code of 1986 (relat-
ing to disaster losses) is amended by adding at the end
the following new paragraph:
‘‘(5) ADJUSTED
GROSS
INCOME
THRESHOLD
NOT TO APPLY.—Subsection (h)(2) shall not apply