Rep. Lloyd Smucker
The U.S. House of Representatives overwhelmingly approved a bipartisan bill introduced by U.S. Rep. Lloyd Smucker (R-PA) that would ensure victims of domestic abuse have penalty-free early access to their retirement fund advances.
The House on March 29 voted 414-5 to approve the Securing a Strong Retirement Act, H.R. 2954, which includes Rep. Smucker’s Savings Access For Escaping and Rebuilding (SAFER) Act, H.R. 2953. The U.S. Senate on March 30 received the larger bill for consideration.
“I thank my colleagues in the House for advancing our proposal,” Rep. Smucker said. “I hope our colleagues in the United States Senate will continue to advance our proposal.”
The congressman in May 2021 cosponsored H.R. 2953 with U.S. Rep. Gwen Moore (D-WI) and bill sponsor U.S. Rep. Lucy McBath (D-GA) to allow penalty-free distributions from tax-exempt retirement plans for domestic abuse victims. The bill was included in H.R. 2954, which would make various changes to employer-sponsored retirement plans, including providing for the automatic enrollment of employees in certain plans and increasing the age at which participants are required to begin receiving mandatory distributions, according to the congressional record bill summary.
“I’m grateful for the opportunity to be working with Representatives McBath and Moore to support survivors of domestic violence,” said Rep. Smucker. “Those experiencing domestic abuse must have as many tools as possible at their disposal to escape their situation. These funds can be used on a tax and penalty-free basis.”
Specifically, language from Rep. Smucker’s bill would add a provision to the Internal Revenue Code of 1986 to allow victims to withdraw up to $10,000 from their retirement plan within one year of experiencing domestic abuse, according to a bill summary provided by his office. The amount a victim withdraws from their retirement fund may be replenished within a three-year period from penalty-free distribution.