WASHINGTON— Today, US Senators Bill Cassidy, MD (R-LA) and David Vitter (R-LA) introduced S.3358 in the US Senate to waive the 10 percent penalty for early IRA withdrawals for those impacted by the August flooding. This bill will supplement the regulatory waivers to allow Louisianans impacted by the August flooding early access to retirement funds.
“Whatever can be done to help your family rebuild, recover and prosper must be done,” said Dr. Cassidy. “If your home is destroyed, if your living room is covered in mud – this bill allows you to access your own money to help your family get back to normal.”
The bill would:
· Exempt early withdrawals under $100,000 from the 10% penalty;
· Allow people to repay their IRA those amounts within 3 years;
· Treat the withdrawal as income, but would allow individuals to include only a third of
it in their income each year for tax purposes.
This bill follows Senator Cassidy’s efforts to secure extensions of tax filing deadlines and approval of hardship withdrawals for Louisianans affected by the August flooding.
Dr. Cassidy sent a letter to the IRS requesting early access to retirement funds for those affected by flooding in Louisiana. That letter can be read here.