Bill > S2495

This bill, the Kathryn Manginelli Act of 2019 or the Compassionate Retirement Act of 2019, would amend the Internal Revenue Code to establish an exception to the penalty on early distributions from qualified retirement plans for individuals diagnosed with a terminal illness. Specifically, it would allow employees who have been diagnosed with an illness or physical condition that can reasonably be expected to result in death within seven years to make early withdrawals from their tax-preferred pension plans without incurring the usual 10% penalty. The employee would need to provide documentation of the terminal diagnosis to the satisfaction of the Secretary of the Treasury.