[Congressional Record Volume 163, Number 195 (Thursday, November 30, 2017)]
[Senate]
[Pages S7636-S7637]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 1794. Mr. CASSIDY submitted an amendment intended to be proposed
by him to the bill H.R. 1, to provide for reconciliation pursuant to
titles II and V of the concurrent resolution on the budget for fiscal
year 2018; which was ordered to lie on the table; as follows:
Beginning on page 55, strike line 6 and all that follows
through page 66, line 16, and insert the following:
SEC. 11029. RELIEF FOR 2016 DISASTER AREAS.
(a) In General.--For purposes of this section, the term
``2016 disaster area'' means any area with respect to which a
major disaster has been declared by the President under
section 401 of the Robert T. Stafford Disaster Relief and
Emergency Assistance Act during calendar year 2016.
(b) Special Rules for Use of Retirement Funds With Respect
to Areas Damaged by 2016 Disasters.--
(1) Tax-favored withdrawals from retirement plans.--
(A) In general.--Section 72(t) of the Internal Revenue Code
of 1986 shall not apply to any qualified 2016 disaster
distribution.
(B) Aggregate dollar limitation.--
(i) In general.--For purposes of this subsection, the
aggregate amount of distributions received by an individual
which may be treated as qualified 2016 disaster distributions
for any taxable year shall not exceed the excess (if any)
of--
(I) $100,000, over
(II) the aggregate amounts treated as qualified 2016
disaster distributions received by such individual for all
prior taxable years.
(ii) Treatment of plan distributions.--If a distribution to
an individual would (without regard to clause (i)) be a
qualified 2016 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 2016
disaster distribution, unless the aggregate amount of such
distributions from all plans maintained by the employer (and
any member of any controlled group which includes the
employer) to such individual exceeds $100,000.
(iii) Controlled group.--For purposes 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 of the Internal Revenue Code of 1986.
(C) Amount distributed may be repaid.--
(i) In general.--Any individual who receives a qualified
2016 disaster distribution may, at any time during the 3-year
period beginning on the day after the date on which such
distribution was received, make one or more contributions in
an aggregate amount not to exceed the amount of such
distribution to an eligible retirement plan of which such
individual is a beneficiary and to which a rollover
contribution of such distribution could be made under section
402(c), 403(a)(4), 403(b)(8), 408(d)(3), or 457(e)(16) of the
Internal Revenue Code of 1986, as the case may be.
[[Page S7637]]
(ii) Treatment of repayments of distributions from eligible
retirement plans other than iras.--For purposes of this
title, if a contribution is made pursuant to clause (i) with
respect to a qualified 2016 disaster distribution from an
eligible retirement plan other than an individual retirement
plan, then the taxpayer shall, to the extent of the amount of
the contribution, be treated as having received the qualified
2016 disaster distribution in an eligible rollover
distribution (as defined in section 402(c)(4) of the Internal
Revenue Code of 1986) and as having transferred the amount to
the eligible retirement plan in a direct trustee to trustee
transfer within 60 days of the distribution.
(iii) Treatment of repayments for distributions from
iras.--For purposes of the Internal Revenue Code of 1986, if
a contribution is made pursuant to clause (i) with respect to
a qualified 2016 disaster distribution from an individual
retirement plan (as defined by section 7701(a)(37) of the
Internal Revenue Code of 1986), then, to the extent of the
amount of the contribution, the qualified 2016 disaster
distribution shall be treated as a distribution described in
section 408(d)(3) of such Code and as having been transferred
to the eligible retirement plan in a direct trustee to
trustee transfer within 60 days of the distribution.
(D) Definitions.--For purposes of this paragraph--
(i) Qualified 2016 disaster distribution.--Except as
provided in subparagraph (B), the term ``qualified 2016
disaster distribution'' means any distribution from an
eligible retirement plan made on or after January 1, 2016,
and before January 1, 2018, to an individual whose principal
place of abode at any time during calendar year 2016 was
located in a disaster area described in subsection (a) and
who has sustained an economic loss by reason of the events
giving rise to the Presidential declaration described in
subsection (a) which was applicable to such area.
(ii) Eligible retirement plan.--The term ``eligible
retirement plan'' shall have the meaning given such term by
section 402(c)(8)(B) of the Internal Revenue Code of 1986.
(E) Income inclusion spread over 3-year period.--
(i) In general.--In the case of any qualified 2016 disaster
distribution, unless the taxpayer elects not to have this
subparagraph apply for any taxable year, any amount required
to be included in gross income for such taxable year shall be
so included ratably over the 3-taxable-year period beginning
with such taxable year.
(ii) Special rule.--For purposes of clause (i), rules
similar to the rules of subparagraph (E) of section
408A(d)(3) of the Internal Revenue Code of 1986 shall apply.
(F) Special rules.--
(i) Exemption of distributions from trustee to trustee
transfer and withholding rules.--For purposes of sections
401(a)(31), 402(f), and 3405 of the Internal Revenue Code of
1986, qualified 2016 disaster distribution shall not be
treated as eligible rollover distributions.
(ii) Qualified 2016 disaster distributions treated as
meeting plan distribution requirements.--For purposes of the
Internal Revenue Code of 1986, a qualified 2016 disaster
distribution shall be treated as meeting the requirements of
sections 401(k)(2)(B)(i), 403(b)(7)(A)(ii), 403(b)(11), and
457(d)(1)(A) of the Internal Revenue Code of 1986.
(2) Provisions relating to plan amendments.--
(A) In general.--If this paragraph applies to any amendment
to any plan or annuity contract, such plan or contract shall
be treated as being operated in accordance with the terms of
the plan during the period described in subparagraph
(B)(ii)(I).
(B) Amendments to which subsection applies.--
(i) In general.--This paragraph shall apply to any
amendment to any plan or annuity contract which is made--
(I) pursuant to any provision of this section, or pursuant
to any regulation under any provision of this section; and
(II) on or before the last day of the first plan year
beginning on or after January 1, 2018, or such later date as
the Secretary prescribes.
In the case of a governmental plan (as defined in section
414(d) of the Internal Revenue Code of 1986), subclause (II)
shall be applied by substituting the date which is 2 years
after the date otherwise applied under subclause (II).
(ii) Conditions.--This paragraph shall not apply to any
amendment unless--
(I) during the period--
(aa) beginning on the date that this section or the
regulation described in clause (i)(I) takes effect (or in the
case of a plan or contract amendment not required by this
section or such regulation, the effective date specified by
the plan); and
(bb) ending on the date described in clause (i)(II) (or, if
earlier, the date the plan or contract amendment is adopted),
the plan or contract is operated as if such plan or contract
amendment were in effect; and
(II) such plan or contract amendment applies retroactively
for such period.
(c) Special Rules for Personal Casualty Losses Related to
2016 Major Disaster.--
(1) In general.--If an individual has a net disaster loss
for any taxable year beginning after December 31, 2017, and
before January 1, 2026--
(A) the amount determined under section 165(h)(2)(A)(ii) of
the Internal Revenue Code of 1986 shall be equal to the sum
of--
(i) such net disaster loss, and
(ii) so much of the excess referred to in the matter
preceding clause (i) of section 165(h)(2)(A) of such Code
(reduced by the amount in clause (i) of this subparagraph) as
exceeds 10 percent of the adjusted gross income of the
individual,
(B) section 165(h)(1) of such Code shall be applied by
substituting ``$500'' for ``$500 ($100 for taxable years
beginning after December 31, 2009)'',
(C) the standard deduction determined under section 63(c)
of such Code shall be increased by the net disaster loss, and
(D) section 56(b)(1)(E) of such Code shall not apply to so
much of the standard deduction as is attributable to the
increase under subparagraph (C) of this paragraph.
(2) Net disaster loss.--For purposes of this subsection,
the term ``net disaster loss'' means the excess of qualified
disaster-related personal casualty losses over personal
casualty gains (as defined in section 165(h)(3)(A) of the
Internal Revenue Code of 1986).
(3) Qualified disaster-related personal casualty losses.--
For purposes of this paragraph, the term ``qualified
disaster-related personal casualty losses'' means losses
described in section 165(c)(3) of the Internal Revenue Code
of 1986 which arise in a disaster area described in
subsection (a) on or after January 1, 2016, and which are
attributable to the events giving rise to the Presidential
declaration described in subsection (a) which was applicable
to such area.
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