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Easier Access to Retirement Funds After Federally Declared Disasters

This bill introduces new rules for using retirement funds in connection with federally declared disasters. It allows affected individuals to make early withdrawals from retirement plans without penalties and provides more flexible repayment options for retirement plan loans, offering financial relief during difficult times.
Key points
Allows penalty-free withdrawals of up to $100,000 from retirement funds for individuals affected by a federally declared disaster.
Withdrawn amounts can be spread over 3 years for tax purposes or repaid to the retirement plan within 3 years to avoid taxation.
Increases the limit for retirement plan loans to $100,000 or 100% of the account value for disaster-affected individuals.
Allows a one-year delay in repayment of retirement plan loans for those impacted by a disaster.
Facilitates the recontribution of funds withdrawn for home purchases if the purchase was not completed due to a disaster.
article Official text account_balance Process page
Expired
Citizen Poll
No votes cast
Additional Information
Print number: 117_HR_6241
Sponsor: Rep. Thompson, Mike [D-CA-5]
Process start date: 2021-12-09
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Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

To amend the Internal Revenue Code of 1986 to provide for rules for the use of retirement funds in connection with federally declared disasters.

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_HR_6241.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2021-12-09.

What are the main provisions?

Key points include:

  • Allows penalty-free withdrawals of up to $100,000 from retirement funds for individuals affected by a federally declared disaster.
  • Withdrawn amounts can be spread over 3 years for tax purposes or repaid to the retirement plan within 3 years to avoid taxation.
  • Increases the limit for retirement plan loans to $100,000 or 100% of the account value for disaster-affected individuals.
  • Allows a one-year delay in repayment of retirement plan loans for those impacted by a disaster.
  • Facilitates the recontribution of funds withdrawn for home purchases if the purchase was not completed due to a disaster.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Thompson, Mike [D-CA-5].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-28.

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