To amend the Internal Revenue Code of 1986 to allow withdrawals from individual retirement plans without penalty by individuals within areas determined by the President to be disaster areas by reason of certain natural disasters.

Amends the Internal Revenue Code to exempt from the penalty for premature distributions from an individual retirement plan a distribution to an individual residing in an area declared as a federal disaster area due to hurricanes, floods, or other natural disasters occurring in 2004 or thereafter if such distribution is made within six months after the date of the disaster declaration.