H. R. 6081—5 
(ii) CONDITIONS.—This paragraph shall not apply 
to any amendment unless— 
(I) the plan or contract is operated as if such 
plan or contract amendment were in effect for 
the period described in clause (iii), and 
(II) such plan or contract amendment applies 
retroactively for such period. 
(iii) PERIOD DESCRIBED.—The period described in 
this clause is the period— 
(I) beginning on the effective date specified 
by the plan, and 
(II) ending on the date described in clause 
(i)(II) (or, if earlier, the date the plan or contract 
amendment is adopted). 
SEC. 105. TREATMENT OF DIFFERENTIAL MILITARY PAY AS WAGES. 
(a) INCOME TAX WITHHOLDING ON DIFFERENTIAL WAGE PAY-
MENTS.— 
(1) IN GENERAL.—Section 3401 (relating to definitions) is 
amended by adding at the end the following new subsection: 
‘‘(h) DIFFERENTIAL WAGE PAYMENTS TO ACTIVE DUTY MEMBERS 
OF THE UNIFORMED SERVICES.— 
‘‘(1) IN GENERAL.—For purposes of subsection (a), any dif-
ferential wage payment shall be treated as a payment of wages 
by the employer to the employee. 
‘‘(2) DIFFERENTIAL WAGE PAYMENT.—For purposes of para-
graph (1), the term ‘differential wage payment’ means any 
payment which— 
‘‘(A) is made by an employer to an individual with 
respect to any period during which the individual is per-
forming service in the uniformed services (as defined in 
chapter 43 of title 38, United States Code) while on active 
duty for a period of more than 30 days, and 
‘‘(B) represents all or a portion of the wages the indi-
vidual would have received from the employer if the indi-
vidual were performing service for the employer.’’. 
(2) EFFECTIVE DATE.—The amendment made by this sub-
section shall apply to remuneration paid after December 31, 
2008. 
(b) TREATMENT OF DIFFERENTIAL WAGE PAYMENTS FOR RETIRE-
MENT PLAN PURPOSES.— 
(1) PENSION PLANS.— 
(A) IN GENERAL.—Section 414(u) (relating to special 
rules relating to veterans’ reemployment rights under 
USERRA), as amended by section 103(b), is amended by 
adding at the end the following new paragraph: 
‘‘(12) TREATMENT OF DIFFERENTIAL WAGE PAYMENTS.— 
‘‘(A) IN GENERAL.—Except as provided in this para-
graph, for purposes of applying this title to a retirement 
plan to which this subsection applies— 
‘‘(i) an individual receiving a differential wage pay-
ment shall be treated as an employee of the employer 
making the payment, 
‘‘(ii) the differential wage payment shall be treated 
as compensation, and 
‘‘(iii) the plan shall not be treated as failing to 
meet the requirements of any provision described in
H. R. 6081—6 
paragraph (1)(C) by reason of any contribution or ben-
efit which is based on the differential wage payment. 
‘‘(B) SPECIAL RULE FOR DISTRIBUTIONS.— 
‘‘(i) IN GENERAL.—Notwithstanding subparagraph 
(A)(i), 
for 
purposes 
of 
section 
401(k)(2)(B)(i)(I), 
403(b)(7)(A)(ii), 403(b)(11)(A), or 457(d)(1)(A)(ii), an 
individual shall be treated as having been severed 
from employment during any period the individual is 
performing service in the uniformed services described 
in section 3401(h)(2)(A). 
‘‘(ii) LIMITATION.—If an individual elects to receive 
a distribution by reason of clause (i), the plan shall 
provide that the individual may not make an elective 
deferral or employee contribution during the 6-month 
period beginning on the date of the distribution. 
‘‘(C) 
NONDISCRIMINATION
REQUIREMENT.—Subpara-
graph (A)(iii) shall apply only if all employees of an 
employer (as determined under subsections (b), (c), (m), 
and (o)) performing service in the uniformed services 
described in section 3401(h)(2)(A) are entitled to receive 
differential wage payments on reasonably equivalent terms 
and, if eligible to participate in a retirement plan main-
tained by the employer, to make contributions based on 
the payments on reasonably equivalent terms. For purposes 
of applying this subparagraph, the provisions of paragraphs 
(3), (4), and (5) of section 410(b) shall apply. 
‘‘(D) DIFFERENTIAL WAGE PAYMENT.—For purposes of 
this paragraph, the term ‘differential wage payment’ has 
the meaning given such term by section 3401(h)(2).’’. 
(B) CONFORMING AMENDMENT.—The heading for sec-
tion 414(u) is amended by inserting ‘‘AND TO DIFFERENTIAL 
WAGE PAYMENTS
TO MEMBERS
ON ACTIVE DUTY’’ after 
‘‘USERRA’’. 
(2) DIFFERENTIAL WAGE PAYMENTS TREATED AS COMPENSA-
TION
FOR
INDIVIDUAL
RETIREMENT
PLANS.—Section 219(f)(1) 
(defining compensation) is amended by adding at the end the 
following new sentence: ‘‘The term compensation includes any 
differential wage payment (as defined in section 3401(h)(2)).’’. 
(3) EFFECTIVE DATE.—The amendments made by this sub-
section shall apply to years beginning after December 31, 2008. 
(c) PROVISIONS RELATING TO PLAN AMENDMENTS.— 
(1) IN GENERAL.—If this subsection applies to any plan 
or annuity contract amendment, such plan or contract shall 
be treated as being operated in accordance with the terms 
of the plan or contract during the period described in paragraph 
(2)(B)(i). 
(2) AMENDMENTS TO WHICH SECTION APPLIES.— 
(A) IN GENERAL.—This subsection shall apply to any 
amendment to any plan or annuity contract which is 
made— 
(i) pursuant to any amendment made by subsection 
(b)(1), and 
(ii) on or before the last day of the first plan 
year beginning on or after January 1, 2010.
H. R. 6081—7 
In the case of a governmental plan (as defined in section 
414(d) of the Internal Revenue Code of 1986), this subpara-
graph shall be applied by substituting ‘‘2012’’ for ‘‘2010’’ 
in clause (ii). 
(B) CONDITIONS.—This subsection shall not apply to 
any plan or annuity contract amendment unless— 
(i) during the period beginning on the date the 
amendment described in subparagraph (A)(i) takes 
effect and ending on the date described in subpara-
graph (A)(ii) (or, if earlier, the date the plan or contract 
amendment is adopted), the plan or contract is oper-
ated as if such plan or contract amendment were in 
effect, and 
(ii) such plan or contract amendment applies retro-
actively for such period. 
SEC. 106. SPECIAL PERIOD OF LIMITATION WHEN UNIFORMED SERV-
ICES RETIRED PAY IS REDUCED AS A RESULT OF AWARD 
OF DISABILITY COMPENSATION. 
(a) IN GENERAL.—Subsection (d) of section 6511 (relating to 
special rules applicable to income taxes) is amended by adding 
at the end the following new paragraph: 
‘‘(8) SPECIAL RULES WHEN UNIFORMED SERVICES RETIRED 
PAY IS REDUCED AS A RESULT OF AWARD OF DISABILITY COM-
PENSATION.— 
‘‘(A) PERIOD OF LIMITATION ON FILING CLAIM.—If the 
claim for credit or refund relates to an overpayment of 
tax imposed by subtitle A on account of— 
‘‘(i) the reduction of uniformed services retired pay 
computed under section 1406 or 1407 of title 10, United 
States Code, or 
‘‘(ii) the waiver of such pay under section 5305 
of title 38 of such Code, 
as a result of an award of compensation under title 38 
of such Code pursuant to a determination by the Secretary 
of Veterans Affairs, the 3-year period of limitation pre-
scribed in subsection (a) shall be extended, for purposes 
of permitting a credit or refund based upon the amount 
of such reduction or waiver, until the end of the 1-year 
period beginning on the date of such determination. 
‘‘(B) LIMITATION TO 5 TAXABLE YEARS.—Subparagraph 
(A) shall not apply with respect to any taxable year which 
began more than 5 years before the date of such determina-
tion.’’. 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) 
shall apply to claims for credit or refund filed after the date of 
the enactment of this Act. 
(c) TRANSITION
RULES.—In the case of a determination 
described in paragraph (8) of section 6511(d) of the Internal Revenue 
Code of 1986 (as added by this section) which is made by the 
Secretary of Veterans Affairs after December 31, 2000, and before 
the date of the enactment of this Act, such paragraph— 
(1) shall not apply with respect to any taxable year which 
began before January 1, 2001, and 
(2) shall be applied by substituting for ‘‘the date of such 
determination’’ in subparagraph (A) thereof.
H. R. 6081—8 
SEC. 107. DISTRIBUTIONS FROM RETIREMENT PLANS TO INDIVIDUALS 
CALLED TO ACTIVE DUTY. 
(a) IN GENERAL.—Clause (iv) of section 72(t)(2)(G) is amended 
by striking ‘‘, and before December 31, 2007’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to individuals ordered or called to active duty on or 
after December 31, 2007. 
SEC. 108. AUTHORITY TO DISCLOSE RETURN INFORMATION FOR CER-
TAIN VETERANS PROGRAMS MADE PERMANENT. 
(a) IN GENERAL.—Paragraph (7) of section 6103(l) is amended 
by striking the last sentence thereof. 
(b) CONFORMING AMENDMENT.—Section 6103(l)(7)(D)(viii)(III) is 
amended by striking ‘‘sections 1710(a)(1)(I), 1710(a)(2), 1710(b), and 
1712(a)(2)(B)’’ and inserting ‘‘sections 1710(a)(2)(G), 1710(a)(3), and 
1710(b)’’. 
(c) EFFECTIVE DATE.—The amendment made by subsection (a) 
shall apply to requests made after September 30, 2008. 
SEC. 109. CONTRIBUTIONS OF MILITARY DEATH GRATUITIES TO ROTH 
IRAS AND EDUCATION SAVINGS ACCOUNTS. 
(a) PROVISION IN EFFECT BEFORE PENSION PROTECTION ACT.— 
Subsection (e) of section 408A (relating to qualified rollover con-
tribution), as in effect before the amendments made by section 
824 of the Pension Protection Act of 2006, is amended to read 
as follows: 
‘‘(e) QUALIFIED ROLLOVER CONTRIBUTION.—For purposes of this 
section— 
‘‘(1) IN GENERAL.—The term ‘qualified rollover contribution’ 
means a rollover contribution to a Roth IRA from another 
such account, or from an individual retirement plan, but only 
if such rollover contribution meets the requirements of section 
408(d)(3). Such term includes a rollover contribution described 
in section 402A(c)(3)(A). For purposes of section 408(d)(3)(B), 
there shall be disregarded any qualified rollover contribution 
from an individual retirement plan (other than a Roth IRA) 
to a Roth IRA. 
‘‘(2) MILITARY DEATH GRATUITY.— 
‘‘(A) IN
GENERAL.—The term ‘qualified rollover con-
tribution’ includes a contribution to a Roth IRA maintained 
for the benefit of an individual made before the end of 
the 1-year period beginning on the date on which such 
individual receives an amount under section 1477 of title 
10, United States Code, or section 1967 of title 38 of such 
Code, with respect to a person, to the extent that such 
contribution does not exceed— 
‘‘(i) the sum of the amounts received during such 
period by such individual under such sections with 
respect to such person, reduced by 
‘‘(ii) the amounts so received which were contrib-
uted to a Coverdell education savings account under 
section 530(d)(9). 
‘‘(B) ANNUAL
LIMIT
ON
NUMBER
OF
ROLLOVERS
NOT 
TO APPLY.—Section 408(d)(3)(B) shall not apply with respect 
to amounts treated as a rollover by subparagraph (A). 
‘‘(C) APPLICATION
OF
SECTION
72.—For purposes of 
applying section 72 in the case of a distribution which
H. R. 6081—9 
is not a qualified distribution, the amount treated as a 
rollover by reason of subparagraph (A) shall be treated 
as investment in the contract.’’. 
(b) PROVISION IN EFFECT AFTER PENSION PROTECTION ACT.— 
Subsection (e) of section 408A, as in effect after the amendments 
made by section 824 of the Pension Protection Act of 2006, is 
amended to read as follows: 
‘‘(e) QUALIFIED ROLLOVER CONTRIBUTION.—For purposes of this 
section— 
‘‘(1) IN GENERAL.—The term ‘qualified rollover contribution’ 
means a rollover contribution— 
‘‘(A) to a Roth IRA from another such account, 
‘‘(B) from an eligible retirement plan, but only if— 
‘‘(i) in the case of an individual retirement plan, 
such rollover contribution meets the requirements of 
section 408(d)(3), and 
‘‘(ii) in the case of any eligible retirement plan 
(as defined in section 402(c)(8)(B) other than clauses 
(i) and (ii) thereof), such rollover contribution meets 
the requirements of section 402(c), 403(b)(8), or 
457(e)(16), as applicable. 
For purposes of section 408(d)(3)(B), there shall be dis-
regarded any qualified rollover contribution from an indi-
vidual retirement plan (other than a Roth IRA) to a Roth 
IRA. 
‘‘(2) MILITARY DEATH GRATUITY.— 
‘‘(A) IN
GENERAL.—The term ‘qualified rollover con-
tribution’ includes a contribution to a Roth IRA maintained 
for the benefit of an individual made before the end of 
the 1-year period beginning on the date on which such 
individual receives an amount under section 1477 of title 
10, United States Code, or section 1967 of title 38 of such 
Code, with respect to a person, to the extent that such 
contribution does not exceed— 
‘‘(i) the sum of the amounts received during such 
period by such individual under such sections with 
respect to such person, reduced by 
‘‘(ii) the amounts so received which were contrib-
uted to a Coverdell education savings account under 
section 530(d)(9). 
‘‘(B) ANNUAL
LIMIT
ON
NUMBER
OF
ROLLOVERS
NOT 
TO APPLY.—Section 408(d)(3)(B) shall not apply with respect 
to amounts treated as a rollover by the subparagraph (A). 
‘‘(C) APPLICATION
OF
SECTION
72.—For purposes of 
applying section 72 in the case of a distribution which 
is not a qualified distribution, the amount treated as a 
rollover by reason of subparagraph (A) shall be treated 
as investment in the contract.’’. 
(c) EDUCATION SAVINGS ACCOUNTS.—Subsection (d) of section 
530 is amended by adding at the end the following new paragraph: 
‘‘(9) MILITARY DEATH GRATUITY.— 
‘‘(A) IN GENERAL.—For purposes of this section, the 
term ‘rollover contribution’ includes a contribution to a 
Coverdell education savings account made before the end 
of the 1-year period beginning on the date on which the 
contributor receives an amount under section 1477 of title 
10, United States Code, or section 1967 of title 38 of such
H. R. 6081—10 
Code, with respect to a person, to the extent that such 
contribution does not exceed— 
‘‘(i) the sum of the amounts received during such 
period by such contributor under such sections with 
respect to such person, reduced by 
‘‘(ii) the amounts so received which were contrib-
uted to a Roth IRA under section 408A(e)(2) or to 
another Coverdell education savings account. 
‘‘(B) ANNUAL
LIMIT
ON
NUMBER
OF
ROLLOVERS
NOT 
TO APPLY.—The last sentence of paragraph (5) shall not 
apply with respect to amounts treated as a rollover by 
the subparagraph (A). 
‘‘(C) APPLICATION
OF
SECTION
72.—For purposes of 
applying section 72 in the case of a distribution which 
is includible in gross income under paragraph (1), the 
amount treated as a rollover by reason of subparagraph 
(A) shall be treated as investment in the contract.’’. 
(d) EFFECTIVE DATES.— 
(1) IN GENERAL.—Except as provided by paragraphs (2) 
and (3), the amendments made by this section shall apply 
with respect to deaths from injuries occurring on or after the 
date of the enactment of this Act. 
(2) APPLICATION OF AMENDMENTS TO DEATHS FROM INJURIES 
OCCURRING ON OR AFTER OCTOBER 7, 2001, AND BEFORE ENACT-
MENT.—The amendments made by this section shall apply to 
any contribution made pursuant to section 408A(e)(2) or 
530(d)(5) of the Internal Revenue Code of 1986, as amended 
by this Act, with respect to amounts received under section 
1477 of title 10, United States Code, or under section 1967 
of title 38 of such Code, for deaths from injuries occurring 
on or after October 7, 2001, and before the date of the enact-
ment of this Act if such contribution is made not later than 
1 year after the date of the enactment of this Act. 
(3) PENSION PROTECTION ACT CHANGES.—Section 408A(e)(1) 
of the Internal Revenue Code of 1986 (as in effect after the 
amendments made by subsection (b)) shall apply to taxable 
years beginning after December 31, 2007. 
SEC. 110. SUSPENSION OF 5-YEAR PERIOD DURING SERVICE WITH THE 
PEACE CORPS. 
(a) IN GENERAL.—Subsection (d) of section 121 (relating to 
special rules) is amended by adding at the end the following new 
paragraph: 
‘‘(12) PEACE CORPS.— 
‘‘(A) IN GENERAL.—At the election of an individual with 
respect to a property, the running of the 5-year period 
described in subsections (a) and (c)(1)(B) and paragraph 
(7) of this subsection with respect to such property shall 
be suspended during any period that such individual or 
such individual’s spouse is serving outside the United 
States— 
‘‘(i) on qualified official extended duty (as defined 
in paragraph (9)(C)) as an employee of the Peace Corps, 
or 
‘‘(ii) as an enrolled volunteer or volunteer leader 
under section 5 or 6 (as the case may be) of the Peace 
Corps Act (22 U.S.C. 2504, 2505).
H. R. 6081—11 
‘‘(B) APPLICABLE
RULES.—For purposes of subpara-
graph (A), rules similar to the rules of subparagraphs (B) 
and (D) shall apply.’’. 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) 
shall apply to taxable years beginning after December 31, 2007. 
SEC. 111. CREDIT FOR EMPLOYER DIFFERENTIAL WAGE PAYMENTS 
TO EMPLOYEES WHO ARE ACTIVE DUTY MEMBERS OF THE 
UNIFORMED SERVICES. 
(a) IN GENERAL.—Subpart D of part IV of subchapter A of 
chapter 1 (relating to business credits) is amended by adding at 
the end the following new section: 
‘‘SEC. 45P. EMPLOYER WAGE CREDIT FOR EMPLOYEES WHO ARE 
ACTIVE DUTY MEMBERS OF THE UNIFORMED SERVICES. 
‘‘(a) GENERAL RULE.—For purposes of section 38, in the case 
of an eligible small business employer, the differential wage pay-
ment credit for any taxable year is an amount equal to 20 percent 
of the sum of the eligible differential wage payments for each 
of the qualified employees of the taxpayer during such taxable 
year. 
‘‘(b) DEFINITIONS.—For purposes of this section— 
‘‘(1) ELIGIBLE DIFFERENTIAL WAGE PAYMENTS.—The term 
‘eligible differential wage payments’ means, with respect to 
each qualified employee, so much of the differential wage pay-
ments (as defined in section 3401(h)(2)) paid to such employee 
for the taxable year as does not exceed $20,000. 
‘‘(2) QUALIFIED EMPLOYEE.—The term ‘qualified employee’ 
means a person who has been an employee of the taxpayer 
for the 91-day period immediately preceding the period for 
which any differential wage payment is made. 
‘‘(3) ELIGIBLE SMALL BUSINESS EMPLOYER.— 
‘‘(A) IN GENERAL.—The term ‘eligible small business 
employer’ means, with respect to any taxable year, any 
employer which— 
‘‘(i) employed an average of less than 50 employees 
on business days during such taxable year, and 
‘‘(ii) under a written plan of the employer, provides 
eligible differential wage payments to every qualified 
employee of the employer. 
‘‘(B) CONTROLLED GROUPS.—For purposes of subpara-
graph (A), all persons treated as a single employer under 
subsection (b), (c), (m), or (o) of section 414 shall be treated 
as a single employer. 
‘‘(c) COORDINATION WITH OTHER CREDITS.—The amount of 
credit otherwise allowable under this chapter with respect to com-
pensation paid to any employee shall be reduced by the credit 
determined under this section with respect to such employee. 
‘‘(d) DISALLOWANCE FOR FAILURE TO COMPLY WITH EMPLOY-
MENT OR REEMPLOYMENT RIGHTS OF MEMBERS OF THE RESERVE 
COMPONENTS OF THE ARMED FORCES OF THE UNITED STATES.— 
No credit shall be allowed under subsection (a) to a taxpayer for— 
‘‘(1) any taxable year, beginning after the date of the enact-
ment of this section, in which the taxpayer is under a final 
order, judgment, or other process issued or required by a district 
court of the United States under section 4323 of title 38 of 
the United States Code with respect to a violation of chapter 
43 of such title, and
H. R. 6081—12 
‘‘(2) the 2 succeeding taxable years. 
‘‘(e) CERTAIN RULES TO APPLY.—For purposes of this section, 
rules similar to the rules of subsections (c), (d), and (e) of section 
52 shall apply. 
‘‘(f) TERMINATION.—This section shall not apply to any pay-
ments made after December 31, 2009.’’. 
(b) CREDIT TREATED AS PART OF GENERAL BUSINESS CREDIT.— 
Section 38(b) (relating to general business credit) is amended by 
striking ‘‘plus’’ at the end of paragraph (31), by striking the period 
at the end of paragraph (32) and inserting ‘‘, plus’’, and by adding 
at the end of following new paragraph: 
‘‘(33) the differential wage payment credit determined 
under section 45P(a).’’. 
(c) NO DEDUCTION FOR COMPENSATION TAKEN INTO ACCOUNT 
FOR CREDIT.—Section 280C(a) (relating to rule for employment 
credits) is amended by inserting ‘‘45P(a),’’ after ‘‘45A(a),’’. 
(d) CLERICAL AMENDMENT.—The table of sections for subpart 
D of part IV of subchapter A of chapter 1 is amended by adding 
at the end the following new item: 
‘‘Sec. 45P. Employer wage credit for employees who are active duty members of the 
uniformed services.’’. 
(e) EFFECTIVE DATE.—The amendments made by this section 
shall apply to amounts paid after the date of the enactment of 
this Act. 
SEC. 112. STATE PAYMENTS TO SERVICE MEMBERS TREATED AS 
QUALIFIED MILITARY BENEFITS. 
(a) IN GENERAL.—Section 134(b) (defining qualified military 
benefit) is amended by adding at the end the following new para-
graph: 
‘‘(6) CERTAIN STATE PAYMENTS.—The term ‘qualified mili-
tary benefit’ includes any bonus payment by a State or political 
subdivision thereof to any member or former member of the 
uniformed services of the United States or any dependent of 
such member only by reason of such member’s service in an 
combat zone (as defined in section 112(c)(2), determined without 
regard to the parenthetical).’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to payments made before, on, or after the date of 
the enactment of this Act. 
SEC. 113. PERMANENT EXCLUSION OF GAIN FROM SALE OF A PRIN-
CIPAL RESIDENCE BY CERTAIN EMPLOYEES OF THE 
INTELLIGENCE COMMUNITY. 
(a) IN GENERAL.—Paragraph (9) of section 121(d) is amended 
by striking subparagraph (E). 
(b) DUTY STATION MAY BE INSIDE UNITED STATES.—Section 
121(d)(9)(C) (defining qualified official extended duty) is amended 
by striking clause (vi). 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to sales or exchanges after the date of the enactment 
of this Act.
H. R. 6081—13 
SEC. 114. SPECIAL DISPOSITION RULES FOR UNUSED BENEFITS IN 
HEALTH 
FLEXIBLE 
SPENDING 
ARRANGEMENTS 
OF 
INDIVIDUALS CALLED TO ACTIVE DUTY. 
(a) IN GENERAL.—Section 125 (relating to cafeteria plans) is 
amended by redesignating subsections (h) and (i) as subsection 
(i) and (j), respectively, and by inserting after subsection (g) the 
following new subsection: 
‘‘(h) SPECIAL RULE FOR UNUSED BENEFITS IN HEALTH FLEXIBLE 
SPENDING
ARRANGEMENTS
OF
INDIVIDUALS
CALLED
TO
ACTIVE 
DUTY.— 
‘‘(1) IN GENERAL.—For purposes of this title, a plan or 
other arrangement shall not fail to be treated as a cafeteria 
plan or health flexible spending arrangement merely because 
such arrangement provides for qualified reservist distributions. 
‘‘(2) QUALIFIED RESERVIST DISTRIBUTION.—For purposes of 
this subsection, the term ‘qualified reservist distribution’ 
means, any distribution to an individual of all or a portion 
of the balance in the employee’s account under such arrange-
ment if— 
‘‘(A) such individual was (by reason of being a member 
of a reserve component (as defined in section 101 of title 
37, United States Code)) ordered or called to active duty 
for a period in excess of 179 days or for an indefinite 
period, and 
‘‘(B) such distribution is made during the period begin-
ning on the date of such order or call and ending on 
the last date that reimbursements could otherwise be made 
under such arrangement for the plan year which includes 
the date of such order or call.’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to distributions made after the date of the enactment 
of this Act. 
SEC. 115. TECHNICAL CORRECTION RELATED TO EXCLUSION OF CER-
TAIN PROPERTY TAX REBATES AND OTHER BENEFITS PRO-
VIDED TO VOLUNTEER FIREFIGHTERS AND EMERGENCY 
MEDICAL RESPONDERS. 
(a) SOCIAL SECURITY TAXES.— 
(1) Section 3121(a) (relating to definition of wages) is 
amended by striking ‘‘or’’ at the end of paragraph (21), by 
striking the period at the end of paragraph (22) and inserting 
‘‘; or’’, and by inserting after paragraph (22) the following 
new paragraph: 
‘‘(23) any benefit or payment which is excludable from 
the gross income of the employee under section 139B(b).’’. 
(2) Section 209(a) of the Social Security Act is amended 
by striking ‘‘or’’ at the end of paragraph (18), by striking the 
period at the end of paragraph (19) and inserting ‘‘; or’’, and 
by inserting after paragraph (19) the following new paragraph: 
‘‘(20) Any benefit or payment which is excludable from 
the gross income of the employee under section 139B(b) of 
the Internal Revenue Code of 1986).’’. 
(b) UNEMPLOYMENT TAXES.—Section 3306(b) (relating to defini-
tion of wages) is amended by striking ‘‘or’’ at the end of paragraph 
(18), by striking the period at the end of paragraph (19) and 
inserting ‘‘; or’’, and by inserting after paragraph (19) the following 
new paragraph: