CITY COUNCIL MEETING AGENDA PACKET

4938-6770-8028 v1 -54 - __________________________ Connie Martinez __________________________ Serjio Martinez __________________________ Tommy McCoy __________________________ Erika NewsomeThinh Lucero __________________________ Ania Pawlak Addendum A – __________________________ Chris Ota APPENDIX A – Definition of Unforeseeable Emergency For purposes of Section 12.6, the following is the definition of "unforeseeable emergency" as defined by Treasury Regulation § 1.457-6(c)(2): An "unforeseeable emergency” is a severe financial hardship of the participant or beneficiary resulting from an illness or accident of the participant or beneficiary, the participant's or beneficiary's spouse, or the participant's or beneficiary's dependent (as defined in section 152, and, for taxable years beginning on or after January 1, 2005, without regard to section 152(b)(1), (b)(2), and (d)(1)(B)); loss of the participant's or beneficiary's property due to casualty (including the need to rebuild a home following damage to a home not otherwise covered by homeowner's insurance, such as damage that is the result of a natural disaster); or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the participant or the beneficiary. For example, the imminent foreclosure of or eviction from the participant's or beneficiary's primary residence may constitute an unforeseeable emergency. In addition, the need to pay for medical expenses, including non-refundable deductibles, as well as for the cost of prescription drug medication, may constitute an unforeseeable emergency. Finally, the need to pay for the funeral expenses of a spouse or a dependent (as defined in section 152, and, for taxable years beginning on or after January 1, 2005, without regard to section 152(b)(1), (b)(2), and (d)(1)(B)) of a participant or beneficiary may also constitute an unforeseeable Page 121 of 200