Expanding Penalty Free Withdrawal Act

This bill would let people who have been unemployed for a long time take money out of their retirement accounts early without paying an extra 10% tax penalty. To qualify, a person must be unemployed and receive unemployment benefits for 26 straight weeks (or the maximum time their state allows). They can withdraw money without the penalty in the same year they get unemployment benefits or the year after. However, if they get a job and work for at least 60 days, the penalty comes back for any future withdrawals. There are limits on how much can be withdrawn - up to $50,000 per year, or up to $10,000 or half the value of their retirement accounts, whichever is more.

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