Referred to the House Committee on Ways and Means.
Amends IRC section 72(t) to waive the 10% early-withdrawal penalty for distributions from eligible retirement plans when an individual is designated a "victim of fraud." Claimants must apply, provide law enforcement or court documentation, and be designated by the Treasury Secretary. The bill allows repayment rules similar to an existing rollover provision, applies to post-enactment distributions, and requires Treasury guidance within 180 days plus a public awareness campaign.
Liberals emphasize victim relief and fairness benefits.
Relative to its intended legislative type, this bill establishes a clear, narrowly scoped substantive change to the Internal Revenue Code to waive early withdrawal penalties for qualifying victims of fraud and delegates implementation and procedural detail to the Secretary of the Treasury, while providing an explicit guidance deadline and outreach requirement.
Amends IRC section 72(t) to waive the 10% early-withdrawal penalty for distributions from eligible retirement plans when an individual is designated a "victim of fraud." Claimants must apply, provide law enforcement or court documentation, and be designated by the Treasury Secretary.
The bill allows repayment rules similar to an existing rollover provision, applies to post-enactment distributions, and requires Treasury guidance within 180 days plus a public awareness campaign.
Technically modest, low-cost relief with safeguards makes it plausible; success depends on legislative timing and packaging.
Relative to its intended legislative type, this bill establishes a clear, narrowly scoped substantive change to the Internal Revenue Code to waive early withdrawal penalties for qualifying victims of fraud and delegates implementation and procedural detail to the Secretary of the Treasury, while providing an explicit guidance deadline and outreach requirement.
Liberals emphasize victim relief and fairness benefits.
These are examples from the analysis, not a ranked list of the most-affected groups.
Liberals emphasize victim relief and fairness benefits.
Likely supportive: views the bill as a targeted, compassionate fix protecting people harmed by fraud from additional tax penalties.
Sees it as correcting an unfair consequence of being victimized.
Generally favorable but pragmatic: supports targeted relief for demonstrable victims while wanting clear, administrable standards and minimal abuse.
Interested in administrative costs and verification procedures.
Skeptical: concerned about opening a carve-out that could be exploited and about added IRS discretion and administrative costs.
May accept only with tight safeguards.
Reached or meaningfully advanced
Reached or meaningfully advanced
Still ahead
Still ahead
Still ahead
Technically modest, low-cost relief with safeguards makes it plausible; success depends on legislative timing and packaging.
The bill has not accumulated any surfaced votes yet.
Liberals emphasize victim relief and fairness benefits.
Technically modest, low-cost relief with safeguards makes it plausible; success depends on legislative timing and packaging.
Relative to its intended legislative type, this bill establishes a clear, narrowly scoped substantive change to the Internal Revenue Code to waive early withdrawal penalties for qualifying victims of fraud and delegates…
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