KETRAKatrina Emergency Tax Relief Act of 2005 (US)
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GOZA accomplished several things: it expanded the geographical reach of the KETRA provisions to areas damaged by the two subsequent hurricanes; (24) it added several important investment incentive provisions that had apparently not occurred to Congress when it passed KETRA; (25) and it offered technical corrections to several earlier tax bills, including the Growth Tax Relief Reconciliation Act of 2003, (26) the American Jobs Creation Act of 2004, (27) and the Energy Policy Act of 2005.
KETRA and GOZA certainly deserve to be called disaster acts, but the adjective should be understood to refer more to the Acts themselves than to the hurricanes that spawned them.
People presumably began to be able to locate their various accounts (if they had them), and may well have found one or more of the KETRA provisions useful.
KETRA had established special rules regarding the retirement funds of individuals who lived in the Hurricane Katrina Disaster Area (see map 1) and sustained economic losses due to the storm.
KETRA removed the 10% charitable contribution deduction limitation for Hurricane Katrina cash donations made by C corporations during the period beginning August 28, 2005, through December 31, 2005.
KETRA provided that casualty losses attributable to Hurricane Katrina that occurred in the Hurricane Katrina Disaster Area on or after August 25, 2005, are fully deductible.
KETRA also increases the allowable plan loan amount from an employer-sponsored retirement plan.
KETRA permits cash gifts only, so gifts of property, stock or land will not qualify.
The CARE Act of 2005, introduced in the House and Senate in September, differs from KETRA in that it permits tax-free gifts directly from IRAs.
Under KETRA Section 103, individuals affected by Hurricane Katrina, as noted above, may be able to borrow up to $100,000 (or their entire balance, if less) from their Secs.
Under KETRA Section 102, individuals who withdrew money from their retirement plans to build or purchase a home in what is now the Hurricane Katrina disaster area may be able to redeposit those funds and not pay tax.