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employer 
described 
in 
section
457(e)(1)(A) shall be treated as a
qualified retirement plan.
‘‘(iii) 
QUALIFIED
DISASTER-RELIEF
DISTRIBUTION.—Except 
as 
provided 
in
clause (iv), for purposes of this subpara-
graph, the term ‘qualified disaster-relief dis-
tribution’ means any distribution—
‘‘(I) to an individual who has sus-
tained a loss as a result of a major dis-
aster declared under section 401 of the
Robert T. Stafford Disaster Relief and
Emergency Assistance Act and who has
a principal place of abode immediately
before the declaration in a qualified
disaster area, and
‘‘(II) which is made during the 1-
year period beginning on the date such
declaration is made.
‘‘(iv) DOLLAR LIMITATION.—
‘‘(I) 
IN
GENERAL.—The 
term
‘qualified disaster-relief distribution’
shall not include any distributions for
any taxable year to the extent the ag-
gregate amount of such distributions
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exceeds $100,000, reduced by the aggre-
gate amounts treated as qualified dis-
aster-relief distributions with respect to
such individual for all prior taxable
years.
‘‘(II) TREATMENT OF PLAN DIS-
TRIBUTIONS.—If a distribution to an
individual with respect to any such
major disaster would (without regard
to subclause (I)) be a qualified dis-
aster-relief distribution, a plan shall
not be treated as violating any require-
ment of this title merely because it
treats such distribution as a qualified
disaster-relief distribution, unless the
aggregate amount of such distributions
from all plans maintained by the em-
ployer (and any member of any con-
trolled group which includes the em-
ployer) to such individual exceeds
$100,000.
‘‘(v) QUALIFIED DISASTER AREA.—For
purposes of this subparagraph, the term
‘qualified disaster area’ means an area—
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‘‘(I) with respect to which a major
disaster has been declared by the Presi-
dent before September 14, 2005, under
section 401 of the Robert T. Stafford
Disaster Relief and Emergency Assist-
ance Act in connection with Hurricane
Katrina, and
‘‘(II) which is determined by the
President before such date to warrant
assistance from the Federal Govern-
ment under such Act.’’.
(b) EXEMPTION OF DISTRIBUTIONS FROM TRUSTEE
TO TRUSTEE TRANSFER
AND WITHHOLDING RULES.—
Paragraph (4) of section 402(c) (relating to eligible rollover
distribution) is amended by striking ‘‘and’’ at the end of
subparagraph (B), by striking the period at the end of sub-
paragraph (C) and inserting ‘‘, and’’, and by inserting at
the end the following new subparagraph:
‘‘(D) any qualified disaster-relief distribu-
tion 
(within 
the 
meaning 
of 
section
72(t)(2)(G)).’’.
(c) CONFORMING AMENDMENTS.—
(1) Section 401(k)(2)(B)(i) is amended by strik-
ing ‘‘or’’ at the end of subclause (III), by striking
‘‘and’’ at the end of subclause (IV) and inserting
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‘‘or’’, and by inserting after subclause (IV) the fol-
lowing new subclause:
‘‘(V) the date on which a period
referred 
to 
in 
section
72(t)(2)(G)(iii)(II) begins (but only to
the 
extent 
provided 
in 
section
72(t)(2)(G)), and’’.
(2) Section 403(b)(7)(A)(ii) is amended by in-
serting ‘‘sustains a loss as a result of a major disaster
declared under section 401 of the Robert T. Stafford
Disaster Relief and Emergency Assistance Act by rea-
son of Hurricane Katrina (but only to the extent pro-
vided in section 72(t)(2)(G)),’’ before ‘‘or’’.
(3) Section 403(b)(11) is amended by striking
‘‘or’’ at the end of subparagraph (A), by striking the
period at the end of subparagraph (B) and inserting
‘‘, or’’, and by inserting after subparagraph (B) the
following new subparagraph:
‘‘(C) for distributions to which section
72(t)(2)(G) applies.’’.
(4) Section 457(d)(1)(A) is amended by striking
‘‘or’’ at the end of clause (ii), by adding ‘‘or’’ at the
end of clause (iii), and by adding at the end the fol-
lowing new clause: