H.R. 175: Expanding Penalty Free Withdrawal Act

117th Congress · introduced 2021-01-04 · Taxation · Latest: Referred to the House Committee on Ways and Means.

federal

Follow this bill, step by step

Where it came from: introduced 2021-01-04 · official record
Who proposed it: Rep. Watson Coleman, Bonnie [D-NJ-12] · what a sponsor is
What happened next: no floor votes in our records yet. Why?
Where it stands now: Referred to the House Committee on Ways and Means. Not final yet: this can still change. We check for updates every day.
If it becomes law and spends money: follow the money to money laws, then agencies and contracts and grants.

What does this mean?

Official title

Expanding Penalty Free Withdrawal Act

Plain summary

Expanding Penalty Free Withdrawal Act This bill expands the exceptions in the Internal Revenue Code that permit penalty-free distributions to unemployed individuals from retirement plans. The 10% additional tax on early distributions from retirement plans does not apply to an individual after separation from employment if (1) the individual has received federal or state unemployment compensation for 26 consecutive weeks or, if less, the maximum period available under state law; and (2) the distributions are made during the year or the succeeding year in which the compensation is paid. The exception is limited to the lesser of (1) $50,000 from all plans of the individual over a one-year period, or (2) the greater of $10,000 or one-half of the fair market value of the individual's retirement plans and the nonforfeitable portion of the individual's defined contribution plans. The exception does not apply to distributions that are (1) included in the existing exception for distributions to unemployed individuals for health insurance premiums, or (2) are made after the individual has been employed for at least 60 days after the separation.

Congressional Research Service summary (Introduced in House), quoted unchanged (nonpartisan). Read the source.

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A “Nay” vote

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What does this mean? (plain words)

Official text

Expanding Penalty Free Withdrawal Act

Source: Congressional Research Service summary (Introduced in House)

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How did my representative vote? · This bill's floor votes

Officials and money

Sponsor: Rep. Watson Coleman, Bonnie [D-NJ-12] · 7 cosponsors

Cost estimate: No cost estimate published yet.

Cosponsors on this site

Pramila Jayapal (D-WA), Eleanor Holmes Norton (D-DC), Chellie Pingree (D-ME), Peter Welch (D-VT), Bennie G. Thompson (D-MS)

Sponsor's campaign money: Rep. Watson Coleman, Bonnie [D-NJ-12] reported raising $955,740 (2023–2024). Details. Shown for context only; it does not mean any donor supported this bill.

No linked floor roll calls in our collected records yet. This does not mean the bill has never had a vote. Check the official bill history.

Words on this page, explained (1)

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Plain meanings written from linked sources. All words.

Sources

Congressional Research Service summary (Introduced in House)
Congress.gov
Data: GovInfo BILLSTATUS bulk data (Library of Congress), BILLSTATUS-117hr175.xml <https://www.govinfo.gov/bulkdata/BILLSTATUS/117/hr>

Record fed-us-cong117-hr175 · catalog fed-us-congress-bills-cong117 · updated 2026-11-15 by psicol fed-bills-cong117