To amend the Internal Revenue Code of 1986 to allow withdrawals from qualified retirement plans without penalty by individuals within areas determined by the President to be disaster areas by reason of Hurricane Katrina.

Amends the Internal Revenue Code to allow distributions from tax-qualified retirement plans made before December 31, 2006, to individuals who reside within, or own real property located in, a Hurricane Katrina disaster area, without incurring the 10 percent penalty for premature distributions.