Sec. 11028. Relief for 2016 disaster areas
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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. Section 72(t) of the Internal Revenue Code of 1986 shall not apply to any qualified 2016 disaster distribution. 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— $100,000, over the aggregate amounts treated as qualified 2016 disaster distributions received by such individual for all prior taxable years.
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. 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. 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. 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 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. 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. For purposes of this paragraph— 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. 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. 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. 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. 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. 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. 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). This paragraph shall apply to any amendment to any plan or annuity contract which is made— pursuant to any provision of this section, or pursuant to any regulation under any provision of this section, and 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). This paragraph shall not apply to any amendment to a plan or contract unless such amendment applies retroactively for such period, and shall not apply to any such amendment unless the plan or contract is operated as if such amendment were in effect during the period— 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 ending on the date described in clause (i)(II) (or, if earlier, the date the plan or contract amendment is adopted). If an individual has a net disaster loss for any taxable year beginning after December 31, 2015, and before January 1, 2018— the amount determined under section 165(h)(2)(A)(ii) of the Internal Revenue Code of 1986 shall be equal to the sum of— such net disaster loss, and 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, section 165(h)(1) of such Code shall be applied by substituting $500 for $500 ($100 for taxable years beginning after December 31, 2009) , the standard deduction determined under section 63(c) of such Code shall be increased by the net disaster loss, and 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. 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). 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.