shall be treated as a distribution described in section 408(d)(3) of such Code and as having been transferred to the eligible retirement plan in a direct trustee to trustee transfer within 60 days of the distribution. (d) Definitions For purposes of this section— (1) Qualified shutdown distribution The term qualified shutdown distribution means any distribution by an applicable individual from an eligible retirement plan made during a Federal appropriations lapse with respect to such individual. (2) Applicable individual The term applicable individual means any individual— (A) who is a Federal employee furloughed due to a Federal appropriations lapse, (B) who is placed on unpaid leave as a Federal contractor, or as an employee of a Federal contractor, due to a Federal appropriations lapse, (C) who is an employee of a State or other Federal grantee— (i) whose compensation is advanced or reimbursed in whole or in part by the Federal Government, and (ii) who is furloughed due to a Federal appropriations lapse, or (D) who is furloughed due to a Federal appropriations lapse as an employee of the District of Columbia Courts, the Public Defender Service for the District of Columbia, or the District of Columbia government. Such term shall include any excepted employee or an employee performing emergency work, as such terms are defined by the Office of Personnel Management or the appropriate District of Columbia public employer, as applicable, during a Federal appropriations lapse. (3) Federal appropriation lapse (A) In general The term Federal appropriations lapse means any continuous period during which there is a lapse in Federal appropriations. (B) Period of lapse A period of lapse in Federal appropriations shall not be a Federal appropriations lapse with respect to an individual— (i) for longer than the period during which the individual is furloughed (or on unpaid leave in the case of an individual described in paragraph (2)(B)) due to such lapse, and (ii) unless such period includes the end of a pay period for