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. 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.
Student:
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.