[Congressional Record Volume 156, Number 153 (Monday, November 29, 2010)]
[Extensions of Remarks]
[Page E2001]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                   PROVIDING RELIEF TO THE UNEMPLOYED

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                           HON. JIM McDERMOTT

                             of washington

                    in the house of representatives

                       Monday, November 29, 2010

  Mr. McDERMOTT. Madam Speaker, the current recession has impacted the 
lives of millions of American families. Unemployment rates in the past 
3 years have reached record highs, with competition for employment so 
steep that roughly five Americans compete for every available job. 
Providing meaningful relief to the unemployed in these scarce times is, 
by definition, our responsibility as legislators.
  To get through these hard times, millions of unemployed Americans are 
raiding their retirement savings to put food on the table. In 2007, 
over 34 million Americans participated in their employer-sponsored 
retirement plans, and over 20 million Americans had an Individual 
Retirement Account. Unfortunately, withdrawing retirement funds early 
can carry stiff penalties. That is why I am introducing legislation to 
waive the penalty for unemployed taxpayers who have turned to their 
retirement savings for an early distribution. This bill will waive the 
penalty for such distributions made during 2009, 2010, or 2011, so long 
as the taxpayer received 12 consecutive weeks of unemployment 
compensation in the year the distribution was made.
  In creating retirement accounts with special tax treatment, Congress 
was encouraging saving towards a financially stable retirement. It was 
the right thing to do. Congress wanted these funds to be for 
retirement, but Congress did not foresee the economic disaster we are 
going through. By allowing temporary, penalty-free withdrawals from 
retirement accounts when folks are unemployed we are helping the 
unemployed when they need it most.

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