SECTION 1. PENALTY-FREE DISTRIBUTIONS FROM CERTAIN RETIREMENT PLANS TO 
              REPAIR OR REPLACE CERTAIN PROPERTY DAMAGED IN 
              PRESIDENTIALLY-DECLARED DISASTERS.

    (a) In General.--Paragraph (2) of section 72(t) of the Internal 
Revenue Code of 1986 (relating to exceptions to 10-percent additional 
tax on early distributions from qualified retirement plans) is amended 
by adding at the end thereof the following new subparagraph:
                    ``(D) Distributions from certain retirement plans 
                for disaster-related expenses.--Distributions from an 
                individual retirement plan, or from amounts 
                attributable to employer contributions made pursuant to 
                elective deferrals described in subparagraph (A) or (C) 
                of section 402(g)(3) or section 501(c)(18)(D)(iii), 
                which are qualified disaster-related distributions (as 
                defined in paragraph (6)).''
    (b) Definitions.--Section 72(t) of such Code is amended by adding 
at the end thereof the following new paragraph:
            ``(6) Qualified disaster-related distributions.--
                    ``(A) In general.--For purposes of paragraph 
                (2)(D), the term `qualified disaster-related 
                distribution' means any distribution received by an 
                individual to the extent such distribution is used by 
                such individual before the close of the 60th day after 
                the day on which such distribution is received to pay 
                for the repair or replacement of qualified disaster-
                damaged property which is--
                            ``(i) personal property of such individual, 
                        or
                            ``(ii) a residence of such individual.
                    ``(B) Limitations.--
                            ``(i) Only distributions within first 1 
                        year to qualify.--Paragraph (2)(D) shall not 
                        apply to any distribution made more than 1 year 
                        after the date of the determination referred to 
                        in subparagraph (C)(ii).
                            ``(ii) Withdrawals limited to uninsured 
                        losses.--Paragraph (2)(D) shall apply to 
                        distributions to repair or replace any 
                        property--
                                    ``(I) only to the extent of the 
                                loss sustained with respect to such 
                                property which is not compensated for 
                                by insurance or otherwise, and
                                    ``(II) in the case of property 
                                covered by insurance, only if a timely 
                                claim is filed for compensation by such 
                                insurance on the loss sustained with 
                                respect to such property.
                    ``(C) Definitions.--For purposes of this 
                paragraph--
                            ``(i) Disaster-damaged property.--The term 
                        `qualified disaster-damaged property' means 
                        property--
                                    ``(I) which was located in a 
                                disaster area on the date of the 
                                determination referred to in clause 
                                (ii),
                                    ``(II) which was damaged or 
                                destroyed as a result of the disaster 
                                occurring in such area, and
                                    ``(III) which is not connected with 
                                a trade or business or a transaction 
                                entered into for profit.
                            ``(ii) Disaster area.--The term `disaster 
                        area' means an area determined by the President 
                        to warrant assistance under the Robert T. 
                        Stafford Disaster Relief and Emergency 
                        Assistance Act.
                    ``(D) Special rules relating to replacement of 
                residence.--For purposes of this paragraph--
                            ``(i) Certain costs included.--The cost of 
                        replacing a residence includes any usual or 
                        reasonable settlement, financing, or other 
                        closing costs.
                            ``(ii) Special rule where delay in 
                        acquisition.--If any distribution fails to meet 
                        the requirements of subparagraph (A) solely by 
                        reason of a delay or cancellation of the 
                        purchase or construction of a residence, the 
                        amount of the distribution may be contributed 
                        to an individual retirement plan as provided in 
                        section 408(d)(3)(A)(i) (determined by 
                        substituting `120 days' for `60 days' in such 
                        section), except that--
                                    ``(I) section 408(d)(3)(B) shall 
                                not be applied to such contribution, 
                                and
                                    ``(II) such amount shall not be 
                                taken into account in determining 
                                whether section 408(d)(3)(A)(i) applies 
                                to any other amount.''
    (c) Conforming Amendments.--
            (1) Section 401(k)(2)(B)(i) of such Code is amended by 
        striking ``or'' at the end of subclause (III), by striking 
        ``and'' at the end of subclause (IV) and inserting ``or'', and 
        by inserting after subclause (IV) the following new subclause:
                                    ``(V) the date on which qualified 
                                disaster-related distributions (as 
                                defined in section 72(t)(6)) are made, 
                                and''.
            (2) Section 403(b)(11) of such Code 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 qualified disaster-related distributions 
                (as defined in section 72(t)(6)).''
    (d) Effective Date.--The amendments made by this section shall 
apply to distributions after December 31, 1993, with respect to areas 
determined after such date to warrant assistance under the Robert T. 
Stafford Disaster Relief and Emergency Assistance Act.
Output: Amends the Internal Revenue Code to allow penalty-free distributions from certain retirement plans to pay for the repair or replacement of qualified disaster-damaged property.