Bill > HR329

This bill amends the Internal Revenue Code to expand penalty-free distributions from retirement plans for individuals experiencing long-term unemployment. Specifically, the bill allows individuals who have received unemployment compensation for 26 consecutive weeks to withdraw funds from their retirement plans without incurring the typical early withdrawal penalty. The distributions can be made during the period of unemployment or the following tax year, with certain limitations: the withdrawal cannot exceed $50,000 (reduced by previous similar distributions in the past year) or half of the total fair market value of the individual's retirement plans, whichever is greater. The bill aims to provide financial relief for unemployed individuals by allowing them to access retirement funds more flexibly during periods of economic hardship, while still protecting the overall integrity of retirement savings. These provisions would take effect for distributions made after December 31, 2024, giving individuals an additional financial option during extended periods of unemployment.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/329/all-info