Teacher:In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
Teacher: Now, understand the problem? Solve this instance: SECTION 1. SHORT TITLE.

This Act may be cited as the ''Savings Enhancement by Alleviating
Leakage in 401(k) Savings Act of 2011'' or the ''SEAL 401(k) Savings
Act''.

SEC. 2. EXTENDED ROLLOVER PERIOD FOR THE ROLLOVER OF PLAN LOAN OFFSET
AMOUNTS IN CERTAIN CASES.

(a) In General.--Paragraph (3) of section 402(c) of the Internal
Revenue Code of 1986 is amended by adding at the end the following new
subparagraph:
''(C) Rollover of certain plan loan offset
amounts.--
''(i) In general.--In the case of a
qualified plan loan offset amount, paragraph
(1) shall not apply to any transfer of such
amount made after the due date (including
extensions) for filing the return of tax for
the taxable year in which such amount is
treated as distributed from a qualified
employer plan.
''(ii) Qualified plan loan offset amount.--
For purposes of this subparagraph, the term
'qualified plan loan offset amount' means a
plan loan offset amount which is treated as
distributed from a qualified employer plan to a
participant or beneficiary solely by reason
of--
''(I) the termination of the
qualified employer plan, or
''(II) the failure to meet the
repayment terms of the loan from such
plan because of the separation from
service of the participant (whether due
to layoff, cessation of business,
termination of employment, or
otherwise).
''(iii) Plan loan offset amount.--For
purposes of clause (ii), the term 'plan loan
offset amount' means the amount by which the
participant's accrued benefit under the plan is
reduced in order to repay a loan from the plan.
''(iv) Limitation.--This subparagraph shall
not apply to any plan loan offset amount unless
such plan loan offset amount relates to a loan
to which section 72(p)(1) does not apply by
reason of section 72(p)(2).
''(v) Qualified employer plan.--For
purposes of this subsection, the term
'qualified employer plan' has the meaning given
such term by section 72(p)(4).''.
(b) Conforming Amendment.--Subparagraph (A) of section 402(c)(3) of
the Internal Revenue Code of 1986 is amended by striking ''subparagraph
(B)'' and inserting ''subparagraphs (B) and (C)''.
(c) Effective Date.--The amendments made by this section shall
apply to transfers made after the date of the enactment of this Act.

SEC. 3. MODIFICATION OF RULES GOVERNING HARDSHIP DISTRIBUTIONS.

Not later than 1 year after the date of the enactment of this Act,
the Secretary of the Treasury shall modify Treasury Regulation section
1.401(k)-1(d)(3)(iv)(E) to--
(1) delete the prohibition imposed by paragraph (2)
thereof, and
(2) to make any other modifications necessary to carry out
the purposes of section 401(k)(2)(B)(i)(IV) of the Internal
Revenue Code of 1986.

SEC. 4. QUALIFIED EMPLOYER PLANS PROHIBITED FROM MAKING LOANS THROUGH
CREDIT CARDS AND OTHER SIMILAR ARRANGEMENTS.

(a) In General.--Paragraph (2) of section 72(p) of the Internal
Revenue Code of 1986 is amended by redesignating subparagraph (D) as
subparagraph (E) and by inserting after subparagraph (C) the following
new subparagraph:
''(D) Prohibition of loans through credit cards and
other similar arrangements.--Subparagraph (A) shall not
apply to any loan which is made through the use of any
credit card or any other similar arrangement.''
(b) Effective Date.--The amendments made by this section shall
apply to plan years beginning after the date which is 60 days after the
date of the enactment of this Act.

SEC. 5. LIMITATION ON NUMBER OF LOANS FROM QUALIFIED EMPLOYER PLANS
WHICH MAY BE OUTSTANDING WITH RESPECT TO ANY PARTICIPANT
OR BENEFICIARY.

(a) In General.--Paragraph (2) of section 72(p) of the Internal
Revenue Code of 1986, as amended by section 4, is amended by
redesignating subparagraph (E) as subparagraph (F) and by inserting
after subparagraph (D) the following new subparagraph:
''(E) Exception only to apply to 3 loans.--
Subparagraph (A) shall not apply to any loan made after
the date of the enactment of this subparagraph if,
immediately after such loan is made, the number of
outstanding loans from the plan to the participant or
beneficiary exceeds 3.''.
(b) Effective Date.--The amendments made by this section shall
apply to loans made after the date which is 1 year after the date of
the enactment of this Act.
Student:
Savings Enhancement by Alleviating Leakage in 401(k) Savings Act of 2011 or the SEAL 401(k) Act - Amends the Internal Revenue Code, with respect to loans made from a qualified employer plan, to: (1) extend the period for repayment of loans if a plan terminates or a plan participant becomes unemployed, (2) prohibit plans from allowing the use of credit cards or similar arrangements to access loan amounts, and (3) limit to three the number of loans which a plan participant or beneficiary may take at any time.

Requires the Secretary of the Treasury to modify regulations governing hardship distributions from qualified employer plans to allow participants to make additional contributions to a plan during the six month period following a hardship distribution.