I 118th CONGRESS 1st Session H. R. 2637 IN THE HOUSE OF REPRESENTATIVES April 17, 2023 Mr. Santos introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to waive the early withdrawal penalty on certain distributions from qualified retirement plans.

1. Waiver of early withdrawal penalty on certain distributions from qualified retirement plans (a) In general Section 72(t)(2) of the Internal Revenue Code of 1986 is amended to add at the end the following new subparagraph: (O) General exemption amount (i) In general Any distribution (other than a distribution to which paragraph (1) does not apply without regard to this subparagraph) from an applicable eligible retirement plan (as defined in subparagraph (H)(vi)(I)) of any individual to the extent that such distribution does not exceed the excess of $10,000 over the aggregate amount of such distributions made from all such plans of such individual during the 5-year period ending on the date of such distribution. (ii) Treatment of plan distributions An applicable eligible retirement plan (as defined in subparagraph (H)(vi)(I)) shall not be treated as failing to meet any requirement of this title merely because the plan allows a distribution to an individual, unless the aggregate amount of such distributions (other than distributions allowed without regard to this clause) from all plans maintained by the employer (and any member of any controlled group which includes the employer, determined as provided in subparagraph (H)(iv)(II)) to such individual during the 5-year period ending on the date of such distribution exceeds $10,000. . (b) Effective date The amendment made by this section shall apply to distributions made after the date of the enactment of this Act.