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Tax Relief and Retirement Access for Federal Disaster Survivors

This Act provides temporary tax relief for individuals affected by major federal disasters with an incident period beginning on or after December 28, 2024. Citizens can access up to $100,000 from retirement funds without the early withdrawal penalty, spread the income inclusion over three years, and have three years to repay the funds. It also simplifies the deduction of personal casualty losses and allows survivors to use their prior year's income to maximize certain tax credits.
Key points
Retirement Access: Penalty-free withdrawals up to $100,000 from retirement plans for disaster relief, with a 3-year repayment option.
Loss Deductions: Easier deduction of personal property losses by removing the Adjusted Gross Income percentage floor and increasing the standard deduction by the loss amount.
Tax Credits: Ability to use earned income from the preceding year to calculate credits under sections 24(d) and 32 (such as the EITC) if current income dropped.
Loans and Charity: Increased loan limit from retirement plans to $100,000 and delayed repayment schedules; temporary suspension of limits on large cash contributions for disaster relief.
article Official text account_balance Process page
Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_HR_6842
Sponsor: Rep. Chu, Judy [D-CA-28]
Process start date: 2025-12-18
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Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Disaster Survivors Tax Relief and Recovery Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_HR_6842.

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 2025-12-18.

What are the main provisions?

Key points include:

  • Retirement Access: Penalty-free withdrawals up to $100,000 from retirement plans for disaster relief, with a 3-year repayment option.
  • Loss Deductions: Easier deduction of personal property losses by removing the Adjusted Gross Income percentage floor and increasing the standard deduction by the loss amount.
  • Tax Credits: Ability to use earned income from the preceding year to calculate credits under sections 24(d) and 32 (such as the EITC) if current income dropped.
  • Loans and Charity: Increased loan limit from retirement plans to $100,000 and delayed repayment schedules; temporary suspension of limits on large cash contributions for disaster relief.
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. Chu, Judy [D-CA-28].

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 2026-01-19.

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