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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.
article Official text account_balance Process page
Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_HR_329
Sponsor: Rep. Watson Coleman, Bonnie [D-NJ-12]
Process start date: 2025-01-09
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Summarized by: gemini-3-pro-preview
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 119_HR_329.

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 2025-01-09.

What are the main provisions?

Key points include:

  • 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.
What is the specific legal status?

The current status is Introduced.

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 2025-12-24.

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