Bill > HR6241

This bill amends the Internal Revenue Code to provide special rules for the use of retirement funds in connection with federally declared disasters. The key provisions include: 1. Allowing for "qualified disaster recovery distributions" from retirement plans up to $100,000 for individuals whose principal place of abode was located in the qualified disaster area and who sustained an economic loss due to the disaster. These distributions are exempt from the 10% early withdrawal penalty and can be spread over 3 years for income tax purposes. 2. Permitting recontributions of qualified distributions used for home purchases that were not used due to the disaster, within a specified time period. 3. Increasing the limit on loans from qualified employer plans to $100,000 for qualified individuals affected by the disaster and allowing a delay in repayment of existing loans. 4. Providing temporary relief from certain plan amendment requirements to allow plans to be operated in accordance with the new rules. The bill applies to disasters declared by the President under the Stafford Act after December 31, 2020.

Budget and Finance

https://www.congress.gov/bill/117th-congress/house-bill/6241/all-info