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Penalty-Free Retirement Withdrawals for Long-Term Unemployed

This act allows long-term unemployed individuals to withdraw money from their retirement plans without incurring early withdrawal penalties. This aims to provide financial relief during extended periods of unemployment. The changes are effective retroactively from January 1, 2023.
Key points
Allows penalty-free withdrawals from retirement plans for individuals receiving unemployment benefits for 26 consecutive weeks.
Withdrawals can be made during the year unemployment compensation is paid or the succeeding year.
Withdrawal limits apply: up to $50,000 or half the value of retirement plans, whichever is less.
The changes apply to distributions made after December 31, 2022.
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Additional Information
Print number: 118_HR_585
Sponsor: Rep. Watson Coleman, Bonnie [D-NJ-12]
Process start date: 2023-01-26
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Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Expanding Penalty Free Withdrawal Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_585.

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 2023-01-26.

What are the main provisions?

Key points include:

  • Allows penalty-free withdrawals from retirement plans for individuals receiving unemployment benefits for 26 consecutive weeks.
  • Withdrawals can be made during the year unemployment compensation is paid or the succeeding year.
  • Withdrawal limits apply: up to $50,000 or half the value of retirement plans, whichever is less.
  • The changes apply to distributions made after December 31, 2022.
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. Watson Coleman, Bonnie [D-NJ-12].

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 2025-12-25.

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