IRA 60 day problem

[Bill Presson]

1. IRA owner Ed takes a withdrawal from IRA.

2. Ed loans the money to Tom with a promise from Tom to repay the loan within 60 days, so that Ed can replace the money in an IRA.

3. Tom uses the money for a real estate development.

4. The entire development and all of Tom's worldly goods are destroyed by Katrina and Tom can't repay the loan.

Does Ed get any relief from any of the Katrina related legislation? I don't think so. Anyone have any ideas?

Thanks.