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Early Retirement Withdrawals Without Penalty for Terminally Ill Individuals

This act amends tax laws to allow terminally ill individuals to withdraw funds from their retirement plans early without incurring additional penalties. The aim is to provide financial support during a difficult period, enabling them to use their savings more freely. These changes could significantly help cover medical expenses or other needs.
Key points
Terminally ill individuals can withdraw funds from qualified plans without an early distribution penalty.
The definition of terminal illness is expanded to include a life expectancy of 84 months, up from 24 months.
A physician's certification of terminal illness is required.
The changes apply to distributions made after the act's enactment date.
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Expired
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Additional Information
Print number: 117_S_1889
Sponsor: Sen. Burr, Richard [R-NC]
Process start date: 2021-05-27
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Summarized by: gemini-2.5-flash
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Kathryn Manginelli Act of 2021

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_S_1889.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2021-05-27.

What are the main provisions?

Key points include:

  • Terminally ill individuals can withdraw funds from qualified plans without an early distribution penalty.
  • The definition of terminal illness is expanded to include a life expectancy of 84 months, up from 24 months.
  • A physician's certification of terminal illness is required.
  • The changes apply to distributions made after the act's enactment date.
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 Sen. Burr, Richard [R-NC].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2026-01-02.

CATEGORIES

Taxes Health Benefits