This week, U.S. Rep. Brian Mast, R-Fla., unveiled the “Fairness for Early Withdrawers Act” which, he insists, “would ensure that individuals are able to re-contribute all 2020 required minimum distributions back into their retirement accounts.”
Mast teamed up with U.S. Rep. Harley Rouda, D-Calif., on the bill.
“Earlier this year, Congress passed the CARES Act, which waived 2020 required minimum distributions (RMDs) for defined contribution retirement accounts, including 401(k)s and traditional Individual Retirement Accounts (IRAs). The Fairness for Early Withdrawers Act builds on that legislation by waiving the 60-day rollover rule, thereby allowing all who took RMDs in 2020 to transfer the funds back into their retirement savings accounts,” Mast’s office noted.
“Coronavirus has had a devastating financial impact on so many people in our community, especially those who were forced to take money from their retirement savings to make ends meet. It is absolutely critical that we not penalize anyone for making an early withdrawal from their retirement account,” Mast said on Wednesday. “This bill is about doing the right thing and helping people when they need it most.”
“Older Americans should not be forced to drain their hard-earned retirement savings during a pandemic,” Rouda said. “This bipartisan legislation is a common-sense fix that extends flexibility already provided to millions of other retirees. While this bill is a crucial correction — it is not enough. I will keep fighting to ensure Americans can survive the coronavirus crisis without risking financial ruin.”
U.S. Rep. Joe Crowley, D-Ct., and U.S. Rep. Brian Fitzpatrick, R-Penn., are also cosponsoring the bill.
The bill was sent to the U.S. House Ways and Means Committee on Tuesday. So far, there is no counterpart over in the U.S. Senate.
Reach Kevin Derby at email@example.com.