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Disaster Relief: Easier Access to Retirement Funds

This bill simplifies access to retirement funds for individuals affected by federally declared disasters. It allows penalty-free early withdrawals and increases limits on retirement plan loans, also enabling the repayment of funds intended for home purchases if a disaster prevented the acquisition.
Key points
You can withdraw up to $100,000 from retirement funds without extra penalties if you were affected by a federally declared disaster.
Withdrawn amounts can be spread over 3 years for tax purposes or repaid to your retirement plan within 3 years to avoid taxation.
Retirement plan loan limits are increased to $100,000 or 100% of vested benefits for individuals impacted by a disaster.
Repayment of existing retirement plan loans can be delayed by 1 year for those affected by a disaster.
You can repay funds withdrawn for a home purchase but not used due to a disaster back into your retirement plan.
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Expired
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Additional Information
Print number: 117_S_2583
Sponsor: Sen. Cassidy, Bill [R-LA]
Process start date: 2021-08-03
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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

A bill 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_S_2583.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2021-08-03.

What are the main provisions?

Key points include:

  • You can withdraw up to $100,000 from retirement funds without extra penalties if you were affected by a federally declared disaster.
  • Withdrawn amounts can be spread over 3 years for tax purposes or repaid to your retirement plan within 3 years to avoid taxation.
  • Retirement plan loan limits are increased to $100,000 or 100% of vested benefits for individuals impacted by a disaster.
  • Repayment of existing retirement plan loans can be delayed by 1 year for those affected by a disaster.
  • You can repay funds withdrawn for a home purchase but not used due to a disaster back into your retirement plan.
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. Cassidy, Bill [R-LA].

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 2025-12-29.

CATEGORIES

Taxes Benefits Real Estate