[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2953 Introduced in House (IH)]
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117th CONGRESS
1st Session
H. R. 2953
To amend the Internal Revenue Code of 1986 to allow penalty-free
withdrawals from retirement plans for domestic abuse victims.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 4, 2021
Mrs. McBath (for herself, Ms. Moore of Wisconsin, and Mr. Smucker)
introduced the following bill; which was referred to the Committee on
Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to allow penalty-free
withdrawals from retirement plans for domestic abuse victims.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Savings Access For Escaping and
Rebuilding Act of 2021'' or the ``SAFER Act''.
SEC. 2. PENALTY-FREE WITHDRAWALS FROM RETIREMENT PLANS FOR INDIVIDUALS
IN CASE OF DOMESTIC ABUSE.
(a) In General.--Section 72(t)(2) of the Internal Revenue Code of
1986 is amended by adding at the end the following new subparagraph:
``(I) Distributions from retirement plan in case of
domestic abuse.--
``(i) In general.--Any eligible
distribution to a domestic abuse victim.
``(ii) Limitation.--The aggregate amount
which may be treated as an eligible
distribution to a domestic abuse victim by any
individual shall not exceed an amount equal to
the lesser of--
``(I) $10,000, or
``(II) 50 percent of the present
value of the nonforfeitable accrued
benefit of the employee under the plan.
``(iii) Eligible distribution to a domestic
abuse victim.--For purposes of this
subparagraph--
``(I) In general.--A distribution
shall be treated as an eligible
distribution to a domestic abuse victim
if such distribution is from an
applicable eligible retirement plan to
an individual and made during the 1-
year period beginning on the date on
which the individual is a victim of
domestic abuse by a spouse or domestic
partner.
``(II) Domestic abuse.--The term
`domestic abuse' means physical,
psychological, sexual, emotional, or
economic abuse, including efforts to
control, isolate, humiliate, or
intimidate the victim, or to undermine
the victim's ability to reason
independently, including by means of
abuse of the victim's child or another
family member living in the household.
``(iv) Amount distributed may be repaid.--
``(I) In general.--Any individual
who receives a distribution described
in clause (i) may, at any time during
the 3-year period beginning on the day
after the date on which such
distribution was received, make one or
more contributions in an aggregate
amount not to exceed the amount of such
distribution to an applicable eligible
retirement plan of which such
individual is a beneficiary and to
which a rollover contribution of such
distribution could be made under
section 402(c), 403(a)(4), 403(b)(8),
408(d)(3), or 457(e)(16), as the case
may be.
``(II) Limitation on contributions
to applicable eligible retirement plans
other than IRAs.--The aggregate amount
of contributions made by an individual
under subclause (I) to any applicable
eligible retirement plan which is not
an individual retirement plan shall not
exceed the aggregate amount of eligible
distributions to a domestic abuse
victim which are made from such plan to
such individual. Subclause (I) shall
not apply to contributions to any
applicable eligible retirement plan
which is not an individual retirement
plan unless the individual is eligible
to make contributions (other than those
described in subclause (I)) to such
applicable eligible retirement plan.
``(III) Treatment of repayments of
distributions from applicable eligible
retirement plans other than iras.--If a
contribution is made under subclause
(I) with respect to an eligible
distribution to a domestic abuse victim
from an applicable eligible retirement
plan other than an individual
retirement plan, then the taxpayer
shall, to the extent of the amount of
the contribution, be treated as having
received such distribution in an
eligible rollover distribution (as
defined in section 402(c)(4)) and as
having transferred the amount to the
applicable eligible retirement plan in
a direct trustee to trustee transfer
within 60 days of the distribution.
``(IV) Treatment of repayments for
distributions from iras.--If a
contribution is made under subclause
(I) with respect to an eligible
distribution to a domestic abuse victim
from an individual retirement plan,
then, to the extent of the amount of
the contribution, such distribution
shall be treated as a distribution
described in section 408(d)(3) and as
having been transferred to the
applicable eligible retirement plan in
a direct trustee to trustee transfer
within 60 days of the distribution.
``(v) Definition and special rule.--For
purposes of this subparagraph:
``(I) Applicable eligible
retirement plan.--The term `applicable
eligible retirement plan' means an
eligible retirement plan (as defined in
section 402(c)(8)(B)) other than a
defined benefit plan.
``(II) Distributions treated as
meeting plan distribution requirements;
self-certification.--Any distribution
which the employee or participant
certifies as being an eligible
distribution to a domestic abuse victim
shall be treated as meeting the
requirements of sections
401(k)(2)(B)(i), 403(b)(7)(A)(ii),
403(b)(11), and 457(d)(1)(A).''.
(b) Effective Date.--The amendments made by this section shall
apply to distributions made after the date of the enactment of this
Act.
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