Expanding Penalty-Free Retirement Withdrawals for Long-Term Unemployed Individuals
This bill introduces a new financial relief measure allowing long-term unemployed individuals to access their retirement savings without incurring the early withdrawal penalty. Eligibility requires receiving unemployment compensation for at least 26 consecutive weeks after job separation. This change aims to provide necessary liquidity during extended periods of joblessness, capping the penalty-free withdrawal limit at $50,000 (subject to plan value).
Key points
Eliminates the early withdrawal penalty on retirement funds for individuals experiencing long-term unemployment.
Eligibility requires receiving unemployment compensation for 26 consecutive weeks following separation from employment.
The penalty-free withdrawal is limited to the lesser of $50,000 or an amount calculated based on the aggregate value of the individual's retirement plans.
Status:
Introduced
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