U.S. Individual Income Tax Return

2007 Instructions for Form 8915
Qualified Hurricane Retirement Plan Distributions and Repayments
Purpose: This is the first circulated draft of the 2007 Instructions for Form 8915
for your review and comments. See below for a discussion of the major
changes.
TPCC Meeting: None, but one may be arranged if requested.
Prior Version: The 2006 Instructions for Form 8915 are available at:
http://www.irs.gov/pub/irs-pdf/i8915.pdf
Form: The 2007 Form 8915 was circulated earlier at:
http://taxforms.web.irs.gov/Products/Drafts/2007-2/07f8915_d1.pdf

Other Products: Circulations of draft tax forms, instructions, notices, and
publications are posted at:
http://taxforms.web.irs.gov/draft_products.html
Comments: Please email, fax, call, or mail any comments by September 4, 2007.
Gregg M. Lynam
Tax Forms and Publications
SE:W:CAR:MP:T:I:S

Email: [email protected]
Phone: (202) 283-0671
VMS: (202) 622- 4056

Major Changes to the 2007 Instructions for Form 8915
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Qualified hurricane distributions cannot be made after 12/31/2006. Part I,
Total Distributions From All Retirement Plans (including IRAs), was
deleted from the 2007 Form 8915 and references to Part I are deleted
throughout the instructions. (IRC 1400Q).
A caution was added on page 1 stating that qualified hurricane
distributions cannot be taken after 2006.
Part II, Qualified Hurricane Distributions From Retirement Plans (other
than IRAs) was renumbered and is now Part I.
Part III, Qualified Hurricane From Traditional, SEP, SIMPLE, and Roth
IRAs was renumbered and is now Part II.
Line references were updated to conform to line changes on Form 8915.
Year references were updated as appropriate.

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Instructions for Form 8915

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2007

Department of the Treasury
Internal Revenue Service

Instructions for Form 8915
Qualified Hurricane Retirement Plan Distributions and Repayments
Section references are to the Internal
Revenue Code unless otherwise noted.

General Instructions
Purpose of Form
Use Form 8915 if you were adversely
affected by Hurricane Katrina, Rita, or
Wilma, and you received a distribution
that qualifies for favorable tax treatment.

Parts I and II
Use Parts I and II to:
• Report any repayments of qualified
hurricane distributions, and
• Figure the taxable amount, if any, of
your qualified hurricane distributions.
Note. Distributions from retirement plans
(other than IRAs) are reported in Part I
and distributions from IRAs are reported
in Part II.

Additional Information
See Pub. 4492, Information For
Taxpayers Affected by Hurricanes
Katrina, Rita, and Wilma, for more details.

Who Must File
File Form 8915 if any of the following
apply.
• You received a qualified hurricane
distribution from an eligible retirement
plan in 2006 that you are including in
income in equal amounts over 3 years.
• You received a qualified hurricane
distribution from an eligible retirement
plan in 2005 that you are including in
income in equal amounts over 3 years.
• You made a repayment of a qualified
hurricane distribution in 2007.

When and Where to File
File Form 8915 with your 2007 Form
1040, 1040A, or 1040NR. If you are not
required to file an income tax return but
are required to file Form 8915, sign Form
8915 and send it to the Internal Revenue
Service at the same time and place you
would otherwise file Form 1040, 1040A,
or 1040NR.

How is a Qualified
Hurricane Distribution
Taxed?
Generally, a qualified hurricane
distribution is included in your income in
equal amounts over 3 years. However,
you could have elected to include the
entire distribution in your income in the
year of the distribution. Any repayments

made before you file your return and by
the due date (including extensions)
reduce the amount of the distribution
included in your income.

retirement plan in order to repay a loan
could have also been designated as a
qualified hurricane distribution. See
Distribution of plan loan offsets below.

Also, qualified hurricane distributions
are not subject to the additional 10% tax
on early distributions.

Limit. The total of your qualified
hurricane distributions for 2005 and 2006
from all plans is limited to $100,000. If
you have distributions in excess of
$100,000 from more than one type of
plan, such as a 401(k) plan and an IRA,
you may allocate the $100,000 limit
among the plans any way you choose.

!

You cannot take a qualified
hurricane distribution after 2006.

CAUTION

Qualified Hurricane
Distribution
A qualified hurricane distribution is any
distribution you received in 2005 or 2006
from an eligible retirement plan if both of
the following conditions were met.
1. Your main home was located in a
hurricane disaster area listed below on
the date shown for that area.
a. August 28, 2005, for the Hurricane
Katrina disaster area. For this purpose,
that area includes the states of Alabama,
Florida, Louisiana, and Mississippi.
b. September 23, 2005, for the
Hurricane Rita disaster area. For this
purpose, that area includes the states of
Louisiana and Texas.
c. October 23, 2005, for the Hurricane
Wilma disaster area. For this purpose,
that area includes the state of Florida.
2. You sustained an economic loss
because of Hurricane Katrina, Rita, or
Wilma, and your main home was in that
hurricane disaster area on the date in (1)
above for that hurricane. Examples of an
economic loss include, but are not limited
to (a) loss, damage to, or destruction of
real or personal property from fire,
flooding, looting, vandalism, theft, wind, or
other cause; (b) loss related to
displacement from your home; or (c) loss
of livelihood due to temporary or
permanent layoffs.
If (1) and (2) applied, you can
generally designate any distribution in
2005 or 2006 (including periodic
payments and required minimum
distributions) from an eligible retirement
plan as a qualified hurricane distribution,
regardless of whether the distribution was
made on account of Hurricane Katrina,
Rita, or Wilma. Qualified hurricane
distributions are permitted without regard
to your need or the actual amount of your
economic loss.
A reduction or offset in 2005 or 2006 of
your account balance in an eligible
Cat. No. 48411X

Eligible retirement plan. An eligible
retirement plan can be any of the
following.
• A qualified pension, profit-sharing, or
stock bonus plan (including a 401(k)
plan).
• A qualified annuity plan.
• A tax-sheltered annuity contract.
• A governmental section 457 deferred
compensation plan.
• A traditional, SEP, SIMPLE, or Roth
IRA.
Distribution of plan loan offsets. A
distribution of a plan loan offset is a
distribution that occurs when, under the
terms of a plan, the participant’s accrued
benefit is reduced (offset) in order to
repay a loan. A distribution of a plan loan
offset amount can occur for a variety of
reasons, such as when a participant
terminates employment or does not
comply with the terms of repayment. Plan
loan offsets are treated as actual
distributions and are reported on Form
1099-R, box 1.
Main home. Generally, your main home
is the home where you live most of the
time. A temporary absence due to special
circumstances, such as illness, education,
business, military service, evacuation, or
vacation, will not change your main home.
Additional tax. Qualified hurricane
distributions are not subject to the
additional 10% tax (or the 25% additional
tax for certain distributions from SIMPLE
IRAs) on early distributions and are not
required to be reported on Form 5329.
However, any distributions you received
in excess of the $100,000 qualified
hurricane distribution limit may be subject
to the additional tax.
Note. If you chose to treat a distribution
as a qualified hurricane distribution, it is
not eligible for the 20% Capital Gain
Election or the 10-Year Tax Option. For
information on those options, see the
instructions for Form 4972.

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Instructions for Form 8915

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Repayment of a Qualified
Hurricane Distribution
If you choose, you can generally repay
any portion of a qualified hurricane
distribution that is eligible for tax-free
rollover treatment to an eligible retirement
plan. Also, you can repay a qualified
hurricane distribution made on account of
hardship from a retirement plan.
However, see Exceptions later for
qualified hurricane distributions you
cannot repay.
You have 3 years from the day after
the date you received the distribution to
make a repayment. The amount of your
repayment cannot be more than the
amount of the original distribution.
Amounts that are repaid are treated as a
qualified rollover and are not included in
income. Also, for purposes of the
one-rollover-per-year limitation for IRAs, a
repayment to an IRA is not considered a
qualified rollover.
Note. If a taxpayer who had previously
received a qualified hurricane distribution
died in 2007, the distribution may no
longer be spread over 3 years. The
remainder of the distribution (including
any remaining amounts from 2005 or
2006) must be reported on the return of
the deceased taxpayer.
Include on Form 8915 any repayments
you make before filing your 2007 return.
Any repayments you make will reduce the
amount of qualified hurricane distributions
reported on your return for 2007. Do not
include on your 2007 Form 8915 any
repayments you make later than the due
date (including extensions) for filing your
2007 return. If you make a repayment in
2008 after you file your 2007 return, the
repayment will reduce the amount of your
qualified hurricane distributions included
in income on your 2008 return, unless you
are eligible to amend your 2005, 2006, or
2007 return. See Amending Form 8915
later. Also, any excess repayments you
make for 2007 will be carried forward to
your 2008 return or, if you choose, carried
back to your 2005 or 2006 return if
applicable.

Amending Form 8915
If, after filing your original return, you
make a repayment, the repayment may
reduce the amount of your qualified
hurricane distributions reported on that
return. Depending on when a repayment
is made, you may need to file an
amended tax return to refigure your
taxable income.
If you make a repayment by the due
date of your original return (including
extensions), include the repayment on
your amended 2007 Form 8915.
If you make a repayment after the due
date of your original return (including
extensions), include the repayment on
your 2008 Form 8915. However, you may
file an amended Form 8915 for 2005,
2006, or 2007 if either of the following
applies.
• You elected to include all of your
qualified hurricane distributions in income
(instead of over 3 years) on your original
return.
• The amount of the repayment exceeds
the amount of your qualified hurricane
distributions that are included in income
for 2008 and you choose to carry the
excess back to your 2005, 2006, or 2007
tax return. See the example below.
Example. You received a qualified
hurricane distribution in the amount of
$90,000 on January 15, 2006. You
choose to spread the $90,000 over 3
years ($30,000 in income for 2006, 2007,
and 2008). On November 19, 2007, you
make a repayment of $45,000. For 2007,
none of the qualified hurricane distribution
is included in income. The excess
repayment of $15,000 ($45,000 –
$30,000) could have been carried back to
2006 or you could have elected to carry it
forward to 2008.
File Form 1040X, Amended U.S.
Individual Income Tax Return, to amend a
return you have already filed. Generally,
Form 1040X must be filed within 3 years
after the date the original return was filed,
or within 2 years after the date the tax
was paid, whichever is later.

Also file Form 8606 to report any
repayment of a nondeductible contribution
to a traditional IRA on line 1 of Form
8606. If you make a repayment of a
previously deductible contribution to a
traditional IRA, do not file Form 8606
solely because of such repayment. If you
make a repayment to a Roth IRA, see
Pub. 590 to figure your basis.
Exceptions. You cannot repay the
following types of distributions.
1. Qualified hurricane distributions
received as a beneficiary (other than a
surviving spouse).
2. Required minimum distributions.
3. Periodic payments (other than from
an IRA) that are for:
a. A period of 10 years or more,
b. Your life or life expectancy, or
c. The joint lives or life expectancies
of you and your beneficiary.

Specific Instructions
Name and social security number
(SSN). If you file a joint return, enter only
the name and SSN of the spouse whose
information is being reported on Form
8915. If both you and your spouse are
required to file Form 8915, file a separate
Form 8915 for each of you. If you and
your spouse are both filing Forms 8915,
the $100,000 limit on qualified hurricane
distributions and the election to include all
qualified hurricane distributions in income
are determined separately for each
spouse.

Part I—Qualified Hurricane
Distributions From
Retirement Plans (other
than IRAs)
Complete Part I if any of the following
apply.
• You had an amount on your 2005 Form
8915, line 9, and you did not check the
box on that line.
• You had an amount on your 2006 Form
8915, line 11, and you did not check the
box on that line.
• You made a repayment of a qualified
hurricane distribution.

Line 7
At any time during the 3-year period after
the date you received a qualified
hurricane distribution, you can repay any
portion of the distribution to an eligible
retirement plan that is permitted to accept
rollover contributions. You cannot,
however, repay more than the amount of
the original distribution. See Repayment
of a Qualified Hurricane Distribution on
this page for details.
Enter on line 7 the amount of any
repayments you made before filing your
2007 return. Do not include any
repayments made later than the due date
(including extensions) for that return. If
you repaid more than the amount on line
3 (including any excess repayments from
2006 on line 6), the excess will be carried
forward to your 2008 tax return.
Repayments made after the due date of
your 2007 return (including extensions)
generally will be reported on your 2008
tax return. However, you may have to file
an amended return in certain situations.
See Amending Form 8915 on this page.
Example. You received a $90,000
qualified hurricane distribution on January
7, 2006, from your 401(k) plan because of
Hurricane Wilma. On April 1, 2008, you
repay $30,000 to an IRA. You file your
return on April 10, 2008. Since the
repayment was made before you filed
your return, and not later than the due
date (including extensions), you would
enter the $30,000 repayment on line 7.

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Instructions for Form 8915

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Part II—Qualified
Hurricane Distributions
From Traditional, SEP,
SIMPLE, and Roth IRAs
Complete Part II if any of the following
apply.
• You had an amount on your 2005 Form
8915, line 17, and you did not check the
box on that line.
• You had an amount on your 2006 Form
8915, line 26, and you did not check the
box on that line.
• You made a repayment of a qualified
hurricane distribution.

Line 16
At any time during the 3-year period after
the date you received a qualified
hurricane distribution, you can repay any
portion of the distribution to an eligible
retirement plan that is permitted to accept
rollover contributions. You cannot,
however, repay more than the amount of
the original distribution. See Repayment
of a Qualified Hurricane Distribution on
page 2 for details.
Enter on line 16 the amount of any
repayments you made before filing your
2007 return. Do not include any
repayments made later than the due date
(including extensions) for that return. If
you repaid more than the amount on line
12 (including any excess repayments
from 2006 on line 15), the excess will be
carried forward to your 2008 tax return.

Repayments made after the due date of
your 2007 return (including extensions)
generally will be reported on your 2008
tax return. However, you may have to file
an amended return in certain situations.
See Amending Form 8915 on page 2.
Example. You received a $60,000
qualified hurricane distribution on
February 1, 2006, from your Roth IRA
because of Hurricane Katrina. On April 1,
2008, you repay $30,000 to your Roth
IRA. You file your return on April 10,
2008. Since the repayment was made
before you filed your return, and not later
than the due date (including extensions),
you would enter the $30,000 repayment
on line 16.
Privacy Act and Paperwork Reduction
Act Notice. We ask for the information
on this form to carry out the Internal
Revenue laws of the United States. We
need this information to ensure that you
are complying with these laws and to
allow us to figure and collect the right
amount of tax. You are required to give us
this information if you made certain
contributions or received certain
distributions from qualified plans,
including IRAs, and other tax-favored
accounts. Our legal right to ask for the
information requested on this form is
sections 6001, 6011, 6012(a), and 6109
and their regulations. The reason we
need your social security number is to
secure proper identification in order to

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gain access to the tax information in our
files to properly process the form.
You are not required to provide the
information requested on a form that is
subject to the Paperwork Reduction Act
unless the form displays a valid OMB
control number. Books or records relating
to a form or its instructions must be
retained as long as their contents may
become material in the administration of
any Internal Revenue law. Generally, tax
returns and return information are
confidential, as required by section 6103.
However, we may give this information to
the Department of Justice for civil and
criminal litigation, and to cities, states,
and the District of Columbia to carry out
their tax laws. We may also disclose this
information to other countries under a tax
treaty, to federal and state agencies to
enforce federal nontax criminal laws, or to
federal law enforcement and intelligence
agencies to combat terrorism.
The average time and expenses
required to complete and file this form will
vary depending on individual
circumstances. For the estimated
averages, see the instructions for your
income tax return.
If you have suggestions for making this
form simpler, we would be happy to hear
from you. See the instructions for your
income tax return.