I 
113TH CONGRESS 
2D SESSION 
H. R. 4403 
To amend the Internal Revenue Code of 1986 to waive the 10-percent penalty 
on qualified natural disaster distributions from qualified retirement plans. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 4, 2014 
Ms. CLARKE of New York (for herself, Mr. RANGEL, Mr. GRIMM, Mrs. 
MCCARTHY of New York, and Mr. RICHMOND) introduced the following 
bill; which was referred to the Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to waive 
the 10-percent penalty on qualified natural disaster dis-
tributions from qualified retirement plans. 
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 ‘‘Homeowner Disaster 
Relief Act of 2014’’. 
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SEC. 2. WAIVER OF 10-PERCENT PENALTY ON QUALIFIED 
NATURAL DISASTER DISTRIBUTIONS FROM 
QUALIFIED RETIREMENT PLANS. 
(a) IN GENERAL.—Section 72(t)(2) of the Internal 
Revenue Code of 1986 is amended by adding at the end 
the following new subparagraph: 
‘‘(H) QUALIFIED NATURAL DISASTER DIS-
TRIBUTIONS.— 
‘‘(i) IN GENERAL.—Any qualified nat-
ural disaster distribution. 
‘‘(ii) CROSS REFERENCE.—For defini-
tions and rules related to qualified natural 
disaster 
distributions, 
see 
paragraph 
(11).’’. 
(b) DEFINITIONS
AND SPECIAL RULES.—Section 
72(t) of such Code is amended by adding at the end the 
following new paragraph: 
‘‘(11) QUALIFIED
NATURAL
DISASTER
DIS-
TRIBUTIONS.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), the term ‘qualified natural 
disaster distribution’ means any distribution 
from an individual retirement plan, or from 
amounts attributable to employer contributions 
made pursuant to elective deferrals described in 
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such individual for all prior taxable 
years. 
‘‘(ii) TREATMENT OF PLAN DISTRIBU-
TIONS.—If a distribution to an individual 
would (without regard to clause (i)) be a 
qualified natural disaster distribution, a 
plan shall not be treated as violating any 
requirement of this title merely because 
the plan treats such distribution as a 
qualified natural disaster distribution, un-
less the aggregate amount of such distribu-
tions from all plans maintained by the em-
ployer (and any member of any controlled 
group which includes the employer) to such 
individual exceeds $100,000. 
‘‘(iii) CONTROLLED GROUP.—For pur-
poses of clause (ii), the term ‘controlled 
group’ means any group treated as a single 
employer under subsection (b), (c), (m), or 
(o) of section 414. 
‘‘(C) AMOUNT DISTRIBUTED MAY BE RE-
PAID.—Any individual who receives a qualified 
natural disaster distribution may, at any time 
during the 3-year period beginning on the day 
after the date on which such distribution was 
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received, make one or more contributions to an 
individual retirement plan of such individual in 
an aggregate amount not to exceed the amount 
of such distribution. The dollar limitations oth-
erwise applicable to contributions to individual 
retirement plans shall not apply to any con-
tribution made pursuant to the preceding sen-
tence. No deduction shall be allowed for any 
contribution pursuant to this subparagraph. 
‘‘(D) FEDERALLY DECLARED DISASTER.— 
For purposes of this paragraph— 
‘‘(i) IN GENERAL.—The term ‘feder-
ally declared disaster’ means any disaster 
subsequently determined by the President 
of the United States to warrant assistance 
by the Federal Government under the Rob-
ert T. Stafford Disaster Relief and Emer-
gency Assistance Act. 
‘‘(ii) DISASTER AREA.—The term ‘dis-
aster area’ means the area so determined 
to warrant such assistance. 
‘‘(iii) 
DISASTER
DECLARATION 
DATE.—The term ‘disaster declaration 
date’ means the date of such determina-
tion.’’. 
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(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to distributions made after the 
date of the enactment of this Act. 
Æ 
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