Bill · H.R. 2163· House(119-HR-2163)
No Penalties for Victims of Fraud Act
- Introduced
- 3/14/2025
- Last activity
- 3/14/2025 — Referred to the House Committee on Ways and Means.
- Sponsored by
- Haley Stevens
- Cosponsors
- None
- Introduced
- In Committee
What this bill would do
This bill, known as the "No Penalties for Victims of Fraud Act," aims to amend the Internal Revenue Code of 1986. It proposes to waive early withdrawal penalties from retirement accounts for individuals who are victims of fraud. To qualify, an individual must submit an application to the Secretary and be designated as a victim of fraud. Documentation from a law enforcement agency or a court must establish that a fraudulent act resulted in a distribution from an applicable eligible retirement plan. The bill also requires the Secretary of the Treasury to issue guidance and conduct a public awareness campaign.
Yes· 3 of 4
Would people over 65 be better off under this?+5
Provides financial relief to older individuals who may have lost retirement funds to fraud.
Would middle-income households be better off under this?+5
Provides a mechanism to mitigate the impact of fraud on retirement savings for middle-income earners.
Would retired people be better off under this?+5
Assists those relying on retirement accounts who have fallen victim to financial fraud.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
-
Penalty Waivers for Fraud Victims: Under Section 2(a), individuals who are victims of fraud can have early withdrawal penalties waived for distributions made from applicable eligible retirement plans. This provides financial relief to those who have lost funds due to fraudulent acts.
-
Public Education: Section 3(b) requires the Secretary of the Treasury to conduct a public awareness campaign as soon as practicable to educate the public about these new protections and relief options.
-
Clear Procedures: Section 3(a) mandates that the Secretary of the Treasury issue specific guidance within 180 days regarding the process for claiming these penalty waivers.
Potential Negative Impacts for People
-
Administrative Requirements: According to Section 2(a)(ii)(I) and (iii), individuals must undergo a specific process by submitting an application to the Secretary and providing documentation from a lawnt enforcement agency or a court of competent jurisdiction to prove they are a victim of fraud.
-
Limitations on Plan Types: Section 2(a)(v) specifies that the relief applies to an "applicable eligible retirement plan," which specifically excludes defined benefit plans.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Middle Class Households+5Good For Retirees+5Good For Seniors+5
- Economy And Finance
- Improves Consumer Protection+5
- 3/14/2025
- Referred to the House Committee on Ways and Means.
- Introduced in House