The bill would let certain workers affected by a federal funding lapse take up to $30,000 a year from eligible retirement accounts without the usual additional tax for early withdrawals. The limit would be adjusted for inflation after 2025. Recipients could repay the money to an eligible retirement plan within three years. Unless they choose otherwise, taxable income from a withdrawal would be reported over three years.
You may qualify if you are a federal contractor or contractor employee placed on unpaid leave or required to work without pay during a funding lapse. The bill also covers certain federal grantee and state employees whose pay is federally supported, and certain District of Columbia workers. The lapse must last at least two weeks, and the covered period for each person is limited to the time their work or pay was affected. Withdrawals must come from an eligible retirement plan.
The bill does not provide government spending amounts. A withdrawal may still count as taxable income, though the bill would generally spread that income over three years. You could repay up to the amount withdrawn within three years.
No publicly available information.
No publicly available information.