(A) IN GENERAL.—If a distribution to an 
individual would (without regard to paragraph 
(1)) be a Federal Government shutdown dis-
tribution, a plan shall not be treated as vio-
lating any provision of law merely because the 
plan treats such distribution as a Federal Gov-
ernment shutdown distribution, unless the ag-
gregate amount of such distributions from all 
plans maintained by the employer (and any 
member of any controlled group which includes 
the employer) to such individual exceeds the ap-
plicable amount with respect to such individual. 
(B) NO TSP CONDITIONS ON CONTRIBU-
TIONS OR DISTRIBUTIONS.—In the case of the 
Thrift Savings Fund, no limit on the number of 
distributions made to an individual, or on the 
amount of contributions which may be made by 
such individual, shall be imposed solely by rea-
son of a distribution which is a Federal Govern-
ment shutdown distribution. 
(4) CONTROLLED
GROUP.—For purposes of 
paragraph (3), the term ‘‘controlled group’’ means 
any group treated as a single employer under sub-
section (b), (c), (m), or (o) of section 414 of the In-
ternal Revenue Code of 1986. 
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(c) AMOUNT DISTRIBUTED MAY BE REPAID.— 
(1) IN GENERAL.—Any individual who receives 
a Federal Government shutdown distribution may, 
at any time during the 3-year period beginning on 
the day after the date on which such distribution 
was received, make 1 or more contributions in an 
aggregate amount not to exceed the amount of such 
distribution to an eligible retirement plan of which 
such individual is a beneficiary and to which a roll-
over 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 the Internal Revenue 
Code of 1986, if a contribution is made pursuant to 
paragraph (1) with respect to a Federal Government 
shutdown distribution from an eligible retirement 
plan other than an individual retirement plan, then 
the taxpayer shall, to the extent of the amount of 
the contribution, be treated as having received the 
Federal Government shutdown distribution in an eli-
gible rollover distribution (as defined in section 
402(c)(4) of such Code) and as having transferred 
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pbinns on DSK79D2C42PROD with BILLS
the amount to the eligible retirement plan in a direct 
trustee to trustee transfer within 60 days of the dis-
tribution. 
(3) TREATMENT OF REPAYMENTS OF DISTRIBU-
TIONS FROM IRAS.—For purposes of the Internal 
Revenue Code of 1986, if a contribution is made 
pursuant to paragraph (1) with respect to a Federal 
Government shutdown distribution from an indi-
vidual retirement plan (as defined by section 
7701(a)(37) of such Code), then, to the extent of the 
amount of the contribution, the Federal Government 
shutdown distribution shall be treated as a distribu-
tion described in section 408(d)(3) of such Code and 
as having been transferred to the eligible retirement 
plan in a direct trustee to trustee transfer within 60 
days of the distribution. 
(d) DEFINITIONS.—For purposes of this section— 
(1) FEDERAL
GOVERNMENT
SHUTDOWN
DIS-
TRIBUTION.—The term ‘‘Federal Government shut-
down distribution’’ means any distribution by an ap-
plicable individual from an eligible retirement plan 
made during a Federal appropriations lapse with re-
spect to such individual. 
(2) APPLICABLE INDIVIDUAL.—The term ‘‘ap-
plicable individual’’ means any individual— 
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pbinns on DSK79D2C42PROD with BILLS
(A) who is a Federal employee furloughed 
due to a Federal appropriations lapse; 
(B) who is placed on unpaid leave as a 
Federal contractor, or as an employee of a Fed-
eral contractor, due to a Federal appropriations 
lapse, and whose sole source of earned income 
(as defined in section 32(c)(2) of the Internal 
Revenue Code of 1986) would (but for such 
lapse) be remuneration as such a contractor, or 
employee thereof; 
(C) who is an employee of a State or other 
Federal grantee— 
(i) whose compensation is advanced or 
reimbursed in whole or in part by the Fed-
eral Government; and 
(ii) who is furloughed due to a Fed-
eral appropriations lapse; or 
(D) who is furloughed due to a Federal ap-
propriations lapse as an employee of the Dis-
trict of Columbia Courts, the Public Defender 
Service for the District of Columbia, or the Dis-
trict of Columbia government. 
Such term shall include any excepted employee or an 
employee performing emergency work, as such terms 
are defined by the Office of Personnel Management 
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pbinns on DSK79D2C42PROD with BILLS
or the appropriate District of Columbia public em-
ployer, as applicable, during a Federal appropria-
tions lapse. 
(3) FEDERAL APPROPRIATION LAPSE.— 
(A) IN GENERAL.—The term ‘‘Federal ap-
propriations lapse’’ means any continuous pe-
riod during which there is a lapse in Federal 
appropriations. 
(B) PERIOD OF LAPSE.—A period of lapse 
in Federal appropriations shall not be a Federal 
appropriations lapse with respect to an indi-
vidual for longer than the period during which 
the individual is furloughed (or on unpaid leave 
in the case of an individual described in para-
graph (2)(B)) due to such lapse. 
(4) ELIGIBLE RETIREMENT PLAN.—The term 
‘‘eligible retirement plan’’ shall have the meaning 
given such term by section 402(c)(8)(B) of the In-
ternal Revenue Code of 1986. 
(e) INCOME INCLUSION SPREAD OVER 3-YEAR PE-
RIOD.— 
(1) IN GENERAL.—In the case of any Federal 
Government shutdown distribution, unless the tax-
payer elects not to have this paragraph apply for 
any taxable year, any amount required to be in-
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cluded in gross income for such taxable year shall be 
so included ratably over the 3-taxable-year period 
beginning 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, Federal Government shutdown 
distributions shall not be treated as eligible rollover 
distributions. 
(2) FEDERAL
GOVERNMENT
SHUTDOWN
DIS-
TRIBUTIONS TREATED AS MEETING PLAN DISTRIBU-
TION
REQUIREMENTS.—For purposes the Internal 
Revenue Code of 1986, a Federal Government shut-
down distribution shall be treated as meeting the re-
quirements 
of 
sections 
401(k)(2)(B)(i), 
403(b)(7)(A)(ii), 403(b)(11), and 457(d)(1)(A) of 
such Code. 
Æ 
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