(c) AMOUNT DISTRIBUTED MAY BE REPAID.— 
(1) IN GENERAL.—Any individual who receives 
a qualified mortgage relief distribution may, at any 
time during the 5-year period beginning on the day 
after the date on which such distribution was re-
ceived, make one or more contributions in an aggre-
gate amount not to exceed the amount of such dis-
tribution to an eligible retirement plan of which such 
individual is a beneficiary and to which a rollover 
contribution of such distribution could be made 
under 
section 
402(c), 
403(a)(4), 
403(b)(8), 
408(d)(3), or 457(e)(16) of the Internal Revenue 
Code of 1986, as the case may be. 
(2) TREATMENT OF REPAYMENTS OF DISTRIBU-
TIONS FROM ELIGIBLE RETIREMENT PLANS OTHER 
THAN IRAS.—For purposes of such Code, if a con-
tribution is made pursuant to paragraph (1) with re-
spect to a qualified mortgage relief distribution from 
an eligible retirement plan other than an individual 
retirement plan, then the taxpayer shall, to the ex-
tent of the amount of the contribution, be treated as 
having received the qualified mortgage relief dis-
tribution in an eligible rollover distribution (as de-
fined in section 402(c)(4) of such Code) and as hav-
ing transferred the amount to the eligible retirement 
VerDate Aug 31 2005 
03:27 Dec 15, 2007
Jkt 069200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H4627.IH
H4627
bajohnson on PROD1PC77 with BILLS
plan in a direct trustee to trustee transfer within 60 
days of the distribution. 
(3) TREATMENT
OF
REPAYMENTS
FOR
DIS-
TRIBUTIONS
FROM
IRAS.—For purposes of such 
Code, if a contribution is made pursuant to para-
graph (1) with respect to a qualified mortgage relief 
distribution from an individual retirement plan (as 
defined by section 7701(a)(37) of such Code), then, 
to the extent of the amount of the contribution, the 
qualified mortgage relief distribution shall be treated 
as a distribution described in section 408(d)(3) of 
such Code and as having been transferred to the eli-
gible retirement plan in a direct trustee to trustee 
transfer within 60 days of the distribution. 
(d) DEFINITIONS.—For purposes of this section— 
(1) QUALIFIED MORTGAGE RELIEF DISTRIBU-
TION.—Except as provided in subsection (b), the 
term ‘‘qualified mortgage relief distribution’’ means 
any distribution from an eligible retirement plan 
made on or after the date of the enactment of this 
Act and before January 1, 2010, if— 
(A) such distribution is made during any 
90-day period beginning on the date of any in-
crease which occurs under the terms of the loan 
in the interest rate applicable to acquisition in-
VerDate Aug 31 2005 
03:27 Dec 15, 2007
Jkt 069200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H4627.IH
H4627
bajohnson on PROD1PC77 with BILLS
debtedness (as defined in section 163(h)(3)(B) 
of the Internal Revenue Code of 1986, without 
regard to clause (ii) thereof) with respect to the 
principal residence of the taxpayer, and 
(B) the adjusted gross income (as defined 
in section 62 of the such Code) of the taxpayer 
for the taxable year of such distribution does 
not exceed $114,000 ($166,000 in the case of 
a joint return under section 6013 of such 
Code). 
For purposes of subparagraph (A), any increase in 
interest rate which occurs after May 31, 2005, and 
before the date of the enactment of this Act shall be 
treated as occurring on such date of enactment. 
(2) ELIGIBLE RETIREMENT PLAN.—The term 
‘‘eligible retirement plan’’ shall have the meaning 
given such term by section 402(c)(8)(B) of such 
Code. 
(3) PRINCIPAL RESIDENCE.—The term ‘‘prin-
cipal residence’’ has the same meaning as when used 
in section 121 of such Code. 
(e) INCOME INCLUSION SPREAD OVER 5 YEAR PE-
RIOD
FOR QUALIFIED MORTGAGE RELIEF DISTRIBU-
TIONS.— 
VerDate Aug 31 2005 
03:27 Dec 15, 2007
Jkt 069200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H4627.IH
H4627
bajohnson on PROD1PC77 with BILLS
(1) IN GENERAL.—In the case of any qualified 
mortgage relief distribution, unless the taxpayer 
elects not to have this subsection apply for any tax-
able year, any amount required to be included in 
gross income for such taxable year shall be so in-
cluded ratably over the 5-taxable year period begin-
ning with such taxable year. 
(2) SPECIAL
RULE.—For purposes of para-
graph (1), rules similar to the rules of subparagraph 
(E) of section 408A(d)(3) of the Internal Revenue 
Code of 1986 shall apply. 
(f) SPECIAL RULES.— 
(1) EXEMPTION
OF
DISTRIBUTIONS
FROM 
TRUSTEE
TO
TRUSTEE
TRANSFER
AND
WITH-
HOLDING
RULES.—For 
purposes 
of 
sections 
401(a)(31), 402(f), and 3405 of the Internal Rev-
enue Code of 1986, qualified mortgage relief dis-
tributions shall not be treated as eligible rollover dis-
tributions. 
(2) QUALIFIED MORTGAGE RELIEF DISTRIBU-
TIONS TREATED AS MEETING PLAN DISTRIBUTION 
REQUIREMENTS.—For purposes of such Code, a 
qualified mortgage relief distribution shall be treated 
as 
meeting 
the 
requirements 
of 
sections 
VerDate Aug 31 2005 
03:27 Dec 15, 2007
Jkt 069200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H4627.IH
H4627
bajohnson on PROD1PC77 with BILLS
401(k)(2)(B)(i), 403(b)(7)(A)(ii), 403(b)(11), and 
457(d)(1)(A) of such Code. 
(g) 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 amendment made 
by this section, or pursuant to any regula-
tion issued by the Secretary of the Treas-
ury or the Secretary of Labor under this 
section, and 
(ii) on or before the last day of the 
first plan year beginning on or after Janu-
ary 1, 2010, or such later date as the Sec-
retary of the Treasury may prescribe. 
In the case of a governmental plan (as defined 
in section 414(d) of the Internal Revenue Code 
VerDate Aug 31 2005 
03:27 Dec 15, 2007
Jkt 069200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H4627.IH
H4627
bajohnson on PROD1PC77 with BILLS
of 1986), clause (ii) shall be applied by sub-
stituting 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 the leg-
islative or regulatory amendment de-
scribed in subparagraph (A)(i) takes 
effect (or in the case of a plan or con-
tract amendment not required by such 
legislative or regulatory amendment, 
the effective 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 
(ii) such plan or contract amendment 
applies retroactively for such period. 
Æ 
VerDate Aug 31 2005 
03:27 Dec 15, 2007
Jkt 069200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6301
E:\BILLS\H4627.IH
H4627
bajohnson on PROD1PC77 with BILLS