Hurricane Katrina-related legislation (P.L. 109-73) that moved quickly to enactment loosens certain loan and withdrawal rules under the Thrift Savings Plan for those in the designated disaster area. The measure allows participants in retirement savings plans including the TSP to withdraw up to $100,000 from their accounts without incurring the usual 10 percent tax penalty on premature withdrawals. The distributions will still be taxable, but the taxes would be spread out over three years, and there would be no tax liability if the participant paid back the money during that time. Also, the measure increases the maximum outstanding loan amount from $50,000 to $100,000. Implementing guidance from the TSP will be needed before the policies could take effect.