# 116-hr-8787: STAR Act of 2020

116-hr-8787, STAR Act of 2020, is a 116th Congress bill sponsored by Rep. Lesko, Debbie [R-AZ-8] (R-AZ); status Referred to the Committee on Ways and Means, and in addition to the Committee on Education and Labor, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned. (as of 2025-11-18).

- Canonical: https://policyrisk.com/legislation/116-hr-8787
- As of: 2025-11-18
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 116-hr-8787
- Congress: 116
- Title: STAR Act of 2020
- Status: Referred to the Committee on Ways and Means, and in addition to the Committee on Education and Labor, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- Introduced: 2020-11-19
- Sponsor: Rep. Lesko, Debbie [R-AZ-8] (R-AZ)
- Cosponsors: 0
- Policy area: Taxation
- Touches household money: no
- Last recorded action: 2025-11-18

## Summary

Student Aid and Tax Advantaged Accounts Reform Act of 2020 or the STAR Act of 2020. This bill permits annual tax and penalty-free withdrawals of up to $5,250 from 401(k) plans for higher education expenses and penalty-free withdrawals from individual retirement accounts (IRAs) for student loan expenses of taxpayers, spouses, children, and grandchildren. The bill also excludes from gross income, for income tax purposes, distributions up to $5,250 from employer-sponsored student loan and tuition payment plans. It repeals the limitation on the deduction of interest on student loans and increases from $15,000 to $25,000 (adjusted for inflation) the maximum contribution amounts for certain tax-preferred retirement plans. The bill allows employees an election to treat contributions to a 401(k) plan as Roth contributions (thus exempting withdrawals from such plans from tax at retirement).

## Related bills

- 116-hr-9016: DOULA for VA Act of 2020
- 116-hr-8870: To repeal the National Voter Registration Act of 1993.
- 116-hr-8855: HERCULES Act
- 116-hr-8777: CCP Visa Disclosure Act of 2020
- 116-hr-8764: Stop China’s IP Theft Act
- 116-hr-8757: BRICKS Act of 2020

## Sources
- [116-hr-8787 on Congress.gov](https://www.congress.gov/bill/116th-congress/house-bill/8787)

## Related
- [116-hr-9016: DOULA for VA Act of 2020](https://policyrisk.com/legislation/116-hr-9016)
- [116-hr-8870: To repeal the National Voter Registration Act of 1993.](https://policyrisk.com/legislation/116-hr-8870)
- [116-hr-8855: HERCULES Act](https://policyrisk.com/legislation/116-hr-8855)
- [116-hr-8777: CCP Visa Disclosure Act of 2020](https://policyrisk.com/legislation/116-hr-8777)
- [116-hr-8764: Stop China’s IP Theft Act](https://policyrisk.com/legislation/116-hr-8764)
- [116-hr-8757: BRICKS Act of 2020](https://policyrisk.com/legislation/116-hr-8757)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/116-hr-8787 (as of 2025-11-18).