3.0.0 585 2024-07-24T15:23:58Z 2024-07-24T15:23:58Z House H HR 2023-01-26 118 [Congressional Record Volume 169, Number 17 (Thursday, January 26, 2023)][House]From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]By Mrs. WATSON COLEMAN:H.R. 585.Congress has the power to enact this legislation pursuantto the following:Article I, Section 8, Clause 18: [The Congress shall havePower . . .] To make all Laws which shall be necessary andproper for carrying into Execution the foregoing Powers, andall other Powers vested by this Constitution in theGovernment of the United States, or in any Department orOfficer thereof.[Page H430]]]> hswm00 Ways and Means Committee House Standing Referred to 2023-01-26T15:02:35Z 2023-01-26 Referred to the House Committee on Ways and Means. IntroReferral H11100 2 House floor actions hswm00 Ways and Means Committee 2023-01-26 Introduced in House IntroReferral Intro-H 9 Library of Congress 2023-01-26 Introduced in House IntroReferral 1000 9 Library of Congress W000822 Rep. Watson Coleman, Bonnie [D-NJ-12] Bonnie Watson Coleman D NJ 12 N N000147 Del. Norton, Eleanor Holmes [D-DC-At Large] ELEANOR NORTON D DC HOLMES 0 2023-01-26 True P000619 Rep. Peltola, Mary Sattler [D-AK-At Large] Mary Peltola D AK Sattler 0 2023-03-07 False Taxation Taxation 2023-02-13T20:00:31Z 00 2023-01-26 Introduced in House 2023-02-13T20:12:17Z Expanding Penalty Free Withdrawal Act

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 Display Title 45 Expanding Penalty Free Withdrawal Act 2024-07-24T15:23:58Z Short Title(s) as Introduced 101 Expanding Penalty Free Withdrawal Act 2024-05-24T13:42:48Z Introduced in House IH Official Title as Introduced 6 To amend the Internal Revenue Code of 1986 to expand the availability of penalty-free distributions to unemployed individuals from retirement plans. 2024-03-18T20:14:24Z Introduced in House IH Introduced in House 2023-01-26T05:00:00Z https://www.govinfo.gov/content/pkg/BILLS-118hr585ih/xml/BILLS-118hr585ih.xml 2023-01-26 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.