PUBLIC LAW 109–135—DEC. 21, 2005
119 STAT. 2599
area, but which was not so purchased or constructed on account of Hurricane Rita. ‘‘(D) QUALIFIED WILMA DISTRIBUTION.—The term ‘qualified Wilma distribution’ means any distribution (other than a qualified Katrina distribution or a qualified Rita distribution)— ‘‘(i) described in section 401(k)(2)(B)(i)(IV), 403(b)(7)(A)(ii) (but only to the extent such distribution relates to financial hardship), 403(b)(11)(B), or 72(t)(2)(F), ‘‘(ii) received after February 28, 2005, and before October 24, 2005, and ‘‘(iii) which was to be used to purchase or construct a principal residence in the Hurricane Wilma disaster area, but which was not so purchased or constructed on account of Hurricane Wilma. ‘‘(3) APPLICABLE PERIOD.—For purposes of this subsection, the term ‘applicable period’ means— ‘‘(A) with respect to any qualified Katrina distribution, the period beginning on August 25, 2005, and ending on February 28, 2006, ‘‘(B) with respect to any qualified Rita distribution, the period beginning on September 23, 2005, and ending on February 28, 2006, and ‘‘(C) with respect to any qualified Wilma distribution, the period beginning on October 23, 2005, and ending on February 28, 2006. ‘‘(c) LOANS FROM QUALIFIED PLANS.— ‘‘(1) INCREASE IN LIMIT ON LOANS NOT TREATED AS DISTRIBUTIONS.—In the case of any loan from a qualified employer plan (as defined under section 72(p)(4)) to a qualified individual made during the applicable period— ‘‘(A) clause (i) of section 72(p)(2)(A) shall be applied by substituting ‘$100,000’ for ‘$50,000’, and ‘‘(B) clause (ii) of such section shall be applied by substituting ‘the present value of the nonforfeitable accrued benefit of the employee under the plan’ for ‘one-half of the present value of the nonforfeitable accrued benefit of the employee under the plan’. ‘‘(2) DELAY OF REPAYMENT.—In the case of a qualified individual with an outstanding loan on or after the qualified beginning date from a qualified employer plan (as defined in section 72(p)(4))— ‘‘(A) if the due date pursuant to subparagraph (B) or (C) of section 72(p)(2) for any repayment with respect to such loan occurs during the period beginning on the qualified beginning date and ending on December 31, 2006, such due date shall be delayed for 1 year, ‘‘(B) any subsequent repayments with respect to any such loan shall be appropriately adjusted to reflect the delay in the due date under paragraph (1) and any interest accruing during such delay, and ‘‘(C) in determining the 5-year period and the term of a loan under subparagraph (B) or (C) of section 72(p)(2), the period described in subparagraph (A) shall be disregarded.
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