3.0.0 1295 2022-11-01T16:17:42Z 2022-11-01T16:17:42Z House HR 2019-02-14 116 [Congressional Record Volume 165, Number 29 (Thursday, February 14, 2019)][House]From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]By Mrs. WATSON COLEMAN:H.R. 1295.Congress has the power to enact this legislation pursuantto the following:Article 1, Section 8, Clause 1: The Congress shall havePower to lay and collect Taxes, Duties, Imposts and Excises,to pay the Debts and provide for the common Defence andgeneral Welfare of the United States; but all Duties, Impostsand Excise shall be uniform throughout the United States.Article 1, Section 8, Clause 18: To make all Laws whichshall be necessary and proper for carrying into Execution theforegoing Powers, and all other Powers vested by theConstitution in the Government of the United States, or inany Department or Officer thereof.[Page H2035]]]> hswm00 Ways and Means Committee House Standing Referred to 2019-02-14T15:01:05Z 2019-02-14 Referred to the House Committee on Ways and Means. IntroReferral H11100 2 House floor actions hswm00 Ways and Means Committee 2019-02-14 Introduced in House IntroReferral Intro-H 9 Library of Congress 2019-02-14 Introduced in House IntroReferral 1000 9 Library of Congress W000822 Rep. Watson Coleman, Bonnie [D-NJ-12] Bonnie Watson Coleman D NJ 12 N C001069 Rep. Courtney, Joe [D-CT-2] Joe Courtney D CT 2 2020-04-07 False N000147 Del. Norton, Eleanor Holmes [D-DC-At Large] ELEANOR NORTON D DC HOLMES 0 2020-04-07 False T000193 Rep. Thompson, Bennie G. [D-MS-2] BENNIE THOMPSON D MS 2 2020-04-07 False R000588 Rep. Richmond, Cedric L. [D-LA-2] Cedric Richmond D LA L. 2 2020-04-07 False J000298 Rep. Jayapal, Pramila [D-WA-7] Pramila Jayapal D WA 7 2020-04-07 False J000032 Rep. Jackson Lee, Sheila [D-TX-18] SHEILA JACKSON LEE D TX 18 2020-04-28 False R000606 Rep. Raskin, Jamie [D-MD-8] Jamie Raskin D MD 8 2020-04-28 False C001097 Rep. Cárdenas, Tony [D-CA-29] Tony Cárdenas D CA 29 2020-10-06 False C001068 Rep. Cohen, Steve [D-TN-9] Steve Cohen D TN 9 2020-10-09 False Taxation Employee benefits and pensions Income tax deferral Income tax exclusion Income tax rates Unemployment Taxation 00 2019-02-14 Introduced in House 2019-04-15T18:21:00Z Expanding Penalty Free Withdrawal Act of 2019

This bill expands the exceptions in the Internal Revenue Code that permit penalty-free distributions to unemployed individuals from retirement plans.

The 10% additional tax on early distributions from retirement plans does not apply to an individual after separation from employment if (1) the individual has received federal or state unemployment compensation for 26 consecutive weeks or, if less, the maximum period available under state law; and (2) the distributions are made during the year or the succeeding year in which the compensation is paid.

The exception is limited to the lesser of (1) $50,000 from all plans of the individual over a one-year period, or (2) the greater of $10,000 or one-half of the fair market value of the individual's retirement plans and the nonforfeitable portion of the individual's defined contribution plans.

The exception does not apply to distributions that are (1) included in the existing exception for distributions to unemployed individuals for health insurance premiums, or (2) are made after the individual has been employed for at least 60 days after the separation.

]]> Expanding Penalty Free Withdrawal Act of 2019 Display Title Expanding Penalty Free Withdrawal Act of 2019 Official Title as Introduced To amend the Internal Revenue Code of 1986 to expand the availability of penalty-free distributions to unemployed individuals from retirement plans. Introduced in House IH Short Title(s) as Introduced Expanding Penalty Free Withdrawal Act of 2019 Introduced in House IH Introduced in House 2019-02-14T05:00:00Z https://www.govinfo.gov/content/pkg/BILLS-116hr1295ih/xml/BILLS-116hr1295ih.xml 2019-02-14 Referred to the House Committee on Ways and Means. text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Congressional Research Service, Library of Congress This file contains bill summaries and statuses for federal legislation. A bill summary describes the most significant provisions of a piece of legislation and details the effects the legislative text may have on current law and federal programs. Bill summaries are authored by the Congressional Research Service (CRS) of the Library of Congress. As stated in Public Law 91-510 (2 USC 166 (d)(6)), one of the duties of CRS is "to prepare summaries and digests of bills and resolutions of a public general nature introduced in the Senate or House of Representatives". For more information, refer to the User Guide that accompanies this file.