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US HR7146

US HR7146
Enhancing Emergency and Retirement Savings Act of 2022


summary

Introduced
03/17/2022
In Committee
03/17/2022
Crossed Over
Passed
Dead
01/03/2023

Introduced Session

117th Congress

Bill Summary

A BILL To amend the Internal Revenue Code of 1986 to provide for penalty-free withdrawals from retirement accounts for certain emergency expenses, and for other purposes.

AI Summary

This bill, the Enhancing Emergency and Retirement Savings Act of 2022, amends the Internal Revenue Code to allow individuals to make "emergency personal expense distributions" of up to $1,000 per year from their eligible retirement plans without incurring the usual 10% early withdrawal penalty. These distributions can be used to meet unforeseeable or immediate financial needs related to personal or family emergencies. Individuals who receive such distributions can also repay the amounts withdrawn within a 3-year period, which would allow them to avoid taxes on the distributions. The bill also includes rules to limit the use of this provision and prevent abuse.

Committee Categories

Budget and Finance

Sponsors (2)

Last Action

Referred to the House Committee on Ways and Means. (on 03/17/2022)

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