Bill > S3993

This bill, known as the Savings Access For Escaping and Rebuilding (SAFER) Act of 2022, amends the Internal Revenue Code to allow penalty-free withdrawals from eligible retirement plans for individuals who are victims of domestic abuse. The key provisions are: 1. Individuals can withdraw up to $10,000 or 50% of their accrued retirement benefits without penalty if they are victims of domestic abuse by a spouse or domestic partner within the past year. 2. Domestic abuse is defined broadly to include physical, psychological, sexual, emotional, or economic abuse, as well as efforts to control, isolate, humiliate, or undermine the victim's independence. 3. Distributions treated as eligible can be repaid to the retirement plan within 3 years without tax consequences, and the distributions are exempt from the normal trustee-to-trustee transfer and withholding requirements. 4. The amendments apply to distributions made after the bill's enactment date. The purpose of the bill is to provide increased financial flexibility and support for individuals who are experiencing or have recently experienced domestic abuse, allowing them to access their retirement savings to aid in their escape and rebuilding process without incurring additional penalties.

Budget and Finance

https://www.congress.gov/bill/117th-congress/senate-bill/3993/all-info