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Jaime Herrera Beutler Supports Allowing Parents to Withdraw Penalty-Free from Retirement Accounts Following Birth, Adoption

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Washington, D.C., December 30, 2019 | comments
Congresswoman Jaime Herrera Beutler supported allowing parents to withdraw up to $5,000 without penalty from their retirement accounts following the birth or adoption of a child. This provision was included in the recent spending package Congress passed and the president signed into law.
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Congresswoman Jaime Herrera Beutler supported allowing parents to withdraw up to $5,000 without penalty from their retirement accounts following the birth or adoption of a child. This provision was included in the recent spending package Congress passed and the president signed into law.

“Families in Southwest Washington who are struggling to afford housing, child care and medical expenses should be able to access their own savings when they need it most – often, that’s the year following the birth or adoption of a child,” Herrera Beutler said. “I’m pleased to have supported another common-sense solution that eases the financial burden working families face in Ridgefield, Centralia, Bingen and all across our region.”

The types of plans that qualify include Individual Retirement Accounts (IRA) and 401(k) and 403(b) plans. Withdrawals of up to $5,000 are exempt from the 10 percent early withdrawal tax and can be made within one year of the birth of a child or finalization of adoption. If the parents have separate retirement plans, they can each withdraw up to $5,000.

This provision takes effect December 31, 2019.

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