Bill > HR2163

This bill aims to help victims of fraud by modifying the Internal Revenue Code to waive early withdrawal penalties for retirement accounts in specific circumstances. Under the proposed legislation, individuals who have been victims of fraud can withdraw funds from their retirement plans (excluding defined benefit plans) without incurring the standard 10% early withdrawal penalty that typically applies to distributions before age 59½. To qualify, an individual must submit an application to the Secretary of the Treasury with documentation from a law enforcement agency or court proving they were the victim of a fraudulent act that led to a retirement account distribution. The bill also requires the Treasury Department to issue guidance on the waiver process within 180 days of enactment and conduct a public awareness campaign to inform people about these new protections. Additionally, the bill allows individuals to potentially repay the distributed funds, similar to existing rules for other types of retirement account withdrawals. The legislation would apply to distributions made after the date of its enactment, providing a new avenue of financial relief for those who have suffered financial losses due to fraud.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/2163/all-info