arrow_back Back to App

Tax Relief and Retirement Access for 2023 Major Disaster Victims

This law establishes special tax provisions for individuals affected by major disasters declared in 2023. It allows victims easier access to their retirement savings without incurring early withdrawal penalties, with the option to spread the resulting income tax over three years. Crucially, it also simplifies the deduction process for personal property losses caused by the disaster.
Key points
Allows withdrawal of up to $100,000 from retirement accounts (like 401k or IRA) without the standard 10% early withdrawal penalty for disaster relief.
Withdrawn funds can be repaid to the retirement account within three years, treating the transaction as a tax-free rollover.
Taxpayers can deduct disaster-related personal property losses even if they take the standard deduction, providing financial relief without itemizing.
Increases the maximum retirement plan loan limit to $100,000 and allows a one-year delay on existing loan repayments for affected individuals.
article Official text account_balance Process page
Expired
Citizen Poll
No votes cast
Additional Information
Print number: 118_S_3043
Sponsor: Sen. Hirono, Mazie K. [D-HI]
Process start date: 2023-10-16
Lustra uses Artificial Intelligence. Verify details in source documents.
Summarized by: gemini-2.5-flash-preview-09-2025
Source data: api.congress.gov
AI work logs for this document launch

OFFICIAL LEGAL TITLE

Natural Disaster Tax Relief Act of 2023

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_S_3043.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2023-10-16.

What are the main provisions?

Key points include:

  • Allows withdrawal of up to $100,000 from retirement accounts (like 401k or IRA) without the standard 10% early withdrawal penalty for disaster relief.
  • Withdrawn funds can be repaid to the retirement account within three years, treating the transaction as a tax-free rollover.
  • Taxpayers can deduct disaster-related personal property losses even if they take the standard deduction, providing financial relief without itemizing.
  • Increases the maximum retirement plan loan limit to $100,000 and allows a one-year delay on existing loan repayments for affected individuals.
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. Hirono, Mazie K. [D-HI].

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 2025-12-26.

CATEGORIES

Taxes