# 119-hr-329: Expanding Penalty Free Withdrawal Act

119-hr-329, Expanding Penalty Free Withdrawal Act, is a 119th Congress bill sponsored by Rep. Watson Coleman, Bonnie [D-NJ-12] (D-NJ); status introduced; PRIA reads it as touching household money (as of 2025-12-20).

- Canonical: https://policyrisk.com/legislation/119-hr-329
- As of: 2025-12-20
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-hr-329
- Congress: 119
- Title: Expanding Penalty Free Withdrawal Act
- Status: introduced
- Introduced: 2025-01-09
- Sponsor: Rep. Watson Coleman, Bonnie [D-NJ-12] (D-NJ)
- Cosponsors: 3
- Policy area: Taxation
- Touches household money: yes
- Last recorded action: 2025-12-20

## Summary

**Penalty-free early withdrawals for the long-term unemployed.** This bill would let people who receive federal or state unemployment benefits for 26 consecutive weeks take early distributions from qualified retirement plans without the usual 10% additional tax, in the same tax year as the unemployment payments or the following year, and it would apply to distributions made after December 31, 2024. - Unemployed individuals: People receiving 26 consecutive weeks of unemployment compensation could take penalty-free withdrawals capped at the lesser of $50,000 in a 1-year period or the greater of $10,000 or half the fair market value of their qualified retirement accounts. - Reemployed and self-employed people: Withdrawals made after a person is employed for at least 60 days following the unemployment period would again be subject to the 10% additional tax. The bill applies timing rules similar to existing reemployment rules to self-employed individuals.

## Cosponsors (3)

- Rep. Cherfilus-McCormick, Sheila [D-FL-20] (D-FL), 2025-01-09T00:00:00.000Z
- Del. Norton, Eleanor Holmes [D-DC-At Large] (D-DC), 2025-01-09T00:00:00.000Z
- Rep. Olszewski, Johnny [D-MD-2] (D-MD), 2025-02-05T00:00:00.000Z

## Provisions PRIA read

- Penalty-free retirement withdrawals for long-term unemployed: benefit, high. If enacted, long-term unemployed workers could take retirement money without the 10% early-withdrawal penalty. You would need 26 straight weeks of unemployment pay (or your state's shorter max) after losing that job. You could withdraw in the year you get those benefits or the next year. The penalt…

## Related bills

- 119-hr-9877: Health Equity and Accountability Act of 2026
- 119-hr-7977: Energy Bills Relief Act
- 119-hr-7973: Momnibus Act
- 119-hr-8870: BUILD America 250 Act
- 119-hr-5361: George Floyd Justice in Policing Act of 2025
- 119-hr-7481: Department of Homeland Security Appropriations Act, 2026

## Sources
- [119-hr-329 on Congress.gov](https://www.congress.gov/bill/119th-congress/house-bill/329)

## Related
- [119-hr-9877: Health Equity and Accountability Act of 2026](https://policyrisk.com/legislation/119-hr-9877)
- [119-hr-7977: Energy Bills Relief Act](https://policyrisk.com/legislation/119-hr-7977)
- [119-hr-7973: Momnibus Act](https://policyrisk.com/legislation/119-hr-7973)
- [119-hr-8870: BUILD America 250 Act](https://policyrisk.com/legislation/119-hr-8870)
- [119-hr-5361: George Floyd Justice in Policing Act of 2025](https://policyrisk.com/legislation/119-hr-5361)
- [119-hr-7481: Department of Homeland Security Appropriations Act, 2026](https://policyrisk.com/legislation/119-hr-7481)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-hr-329 (as of 2025-12-20).