; coordination with deduction for net operating losses Rules similar to the rules of subparagraphs (B) and (C) of section 7518(g)(6) shall apply for purposes of this paragraph. (3) Additional tax The tax imposed by this chapter for any taxable year on any taxpayer that a owns natural disaster fund shall be increased by the greater of— (A) 20 percent of the amount of any non-qualified distributions from the fund in the taxable year, and (B) an amount equal to interest, at the underpayment rate established under section 6621, on the nonqualified distribution from the time the amount is added to the fund to the time the amount is distributed. (4) Interest calculation For purposes of calculating interest under paragraph (3)(B)— (A) all investment earnings (including gains or losses) in the taxable year shall be treated as added to the fund on the last day of the taxable year, and (B) amounts distributed from the fund shall be treated as distributed on a first-in, first-out basis. (g) Definitions For purposes of this section— (1) Federally declared natural disaster The term Federally declared natural disaster means a natural disaster that is determined by Presidential declaration under the Robert T. Stafford Disaster Relief and Emergency Assistance Act to warrant individual or individual and public assistance under such Act. (2) Nonqualified distribution The term nonqualified distribution means a distribution from a natural disaster fund other than a qualified distribution. (3) Qualified account The term qualified account means an account with a bank (as defined in section 581) or a brokerage account but only if the investments of such accounts are limited to those permitted by subsection (b)(3) and no investments are made in a related person (as defined in section 465(b)(3)(C)) to the taxpayer. (4) Qualified distribution (A) In general The term qualified distribution means with respect to a natural disaster fund an amount equal to the excess of— (i) costs, expenses, and losses (including losses of a type reimbursable