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Summary: Grassley-Baucus Tax Relief Package for Individuals Affected by Hurricane Katrina (PDF)
American Benefits Council 
Sept. 19, 2005
5 pages. Excerpt: The proposal would waive the 10% penalty tax for premature distributions from IRAs and qualified retirement plans (including defined benefit plans, 401(k) plans and 403(b) plans) for individuals whose principal residence is in a federally declared natural disaster area. Individuals eligible for this waiver because of Katrina would be permitted to pay income tax on such distributions ratably over a three-year period.
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