Bill > HR585

This bill proposes to expand the availability of penalty-free distributions from retirement plans for unemployed individuals. The key provisions include: 1) Allowing penalty-free distributions for individuals who have received unemployment compensation for at least 26 consecutive weeks, or the maximum period allowed under state law, and who receive the distributions during the year the unemployment compensation is paid or the following year. 2) Limiting the penalty-free distributions to the lesser of $50,000 (reduced by any prior penalty-free distributions in the last year) or the greater of $10,000 or one-half the value of the individual's qualified retirement plans. 3) Coordinating these new provisions with the existing rules that allow penalty-free distributions for health insurance premiums for unemployed individuals. The amendments made by this bill would apply to distributions made after December 31, 2022.