EXCEPTION TO PENALTY ON EARLY DISTRIBUTIONS FROM QUALIFIED PLANS FOR INDIVIDUALS WITH A TERMINAL ILLNESS.

SEC. 326. EXCEPTION TO PENALTY ON EARLY DISTRIBUTIONS FROM QUALIFIED PLANS FOR INDIVIDUALS WITH A TERMINAL ILLNESS.(a) In General.—Section 72(t)(2), as amended by this Act, is further amended by adding at the end the following new subparagraph:“(L) Terminal illness.—“(i) In general.—Distributions which are made to the employee who is a terminally ill individual on or after the date on which such employee has been certified by a physician as having a terminal illness. “(ii) Definition.—For purposes of this subparagraph, the term ‘terminally ill individual’ has the same meaning given such term under section 101(g)(4)(A), except that ‘84 months’ shall be substituted for ‘24 months’. “(iii) Documentation.—For purposes of this subparagraph, an employee shall not be considered to be a terminally ill individual unless such employee furnishes sufficient evidence to the plan administrator in such form and manner as the Secretary may require. “(iv) Amount distributed may be repaid.—Rules similar to the rules of subparagraph (H)(v) shall apply with respect to an individual who receives a distribution to which clause (i) applies.” . (b) Effective Date.—The amendment made by this section shall apply to distributions made after the date of the enactment of this Act.