Sending Office: Honorable Bonnie Watson Coleman
Cosponsor H.R. 1295 – Expanding Penalty Free Withdrawal Act of 2019
Cosponsors (7): Rep. Joe Courtney, Rep. Eleanor Holmes Norton, Rep. Bennie Thompson (MS-02), Rep. Cedric Richmond, Rep. Pramila Jayapal, Rep. Sheila Jackson Lee, Rep. Jamie Raskin
I invite you to cosponsor
H.R. 1295 – Expanding Penalty Free Withdrawal Act of 2019, which would prevent those who are long-term unemployed from having to pay excessive fees for tapping into their retirement accounts.
As the nation continues to deal with the economic consequences of COVID-19, it is becoming more necessary than ever for people to get access to their money. In the past couple of weeks, people applying for unemployment have skyrocketed to its highest levels
ever recorded. Currently over 10 million people are applying for unemployment due to the loss of their job at a rate magnitude higher than even during the Great Recession. At the same time, according to a recent report by the Bureau of Labor Statistics, roughly
1.2 Million Americans are classified as being long-term unemployed – or unemployed for 27 weeks or more. Those who are long-term unemployed make up 15.9 percent of the entire unemployed
population. Americans who find themselves stuck in long term unemployment are doing their best to find work, but employers won’t give them the consideration they deserve. Meanwhile, being jobless puts them in dire financial straits; some will take part time
work or even go into their retirement savings to help stay afloat, but if you are not 59 ½ years old, you are penalized for taking from your own retirement accounts.
The Expanding Penalty Free Withdrawal Act would remove the 10% additional tax on early withdrawals from retirement accounts if someone has been long-term unemployed. This exception is limited to $50,000 from all the retirement plans an individual has over
a one-year period. This legislation will ensure that individuals do not have to pay to access their own money just to stay financially stable. Working families are still struggling to make enough; if a family was to lose their main sources of income, the effects
on their livelihood will multiple quickly. Without enough funds, they won’t be able to pay bills, mortgages, and other expenses leading to even more financial trouble. This bill is a small step in providing the support needed for working Americans to stay
afloat during hard times.
For more information on the legislation or if you would like a cosponsor, please contact Brad Korten (firstname.lastname@example.org) or call (202) 225-5801.
BONNIE WATSON COLEMAN
Member of Congress
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