Fertility Cost Relief Act
Sponsored By: Representative Levin, Mike [D-CA-49]
Introduced
Summary
This bill would exempt certain retirement-account withdrawals used for fertility treatment from the 10 percent early withdrawal tax. It limits exempted withdrawals to a per-person per-year cap of $20,000 with inflation adjustments starting after 2026 and defines which treatments and plan types qualify.
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- Families and patients: People could withdraw funds penalty-free to pay for IVF, egg or sperm preservation, artificial insemination, genetic testing of embryos, fertility medications, gamete donation, and related services if the money is used within 1 year.
- Workers and accounts: The exemption would apply to distributions from eligible retirement plans other than defined benefit plans and is capped each year at the excess of $20,000 over prior years' qualified fertility withdrawals for the same individual.
- Retirement plans and employers: Plans may treat these distributions as qualified without violating plan rules unless employer-wide distributions exceed the annual limit. The bill also removes rollover and withholding treatment so these amounts are not treated as eligible rollover distributions.
- Timing: The rule would apply to distributions made after December 31, 2025.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 1 benefits, 0 costs, 0 mixed.
Retirement withdrawal relief for fertility
If enacted, distributions used for fertility care would be exempt from the 10% early withdrawal tax. You could treat up to $20,000 per taxable year as a qualified fertility treatment distribution, but that $20,000 is reduced by any earlier such distributions you received. For taxable years beginning in calendar years after 2026, the $20,000 base would be adjusted for inflation. The money must come from an applicable eligible retirement plan (not a defined benefit plan) and must be used within one year to pay qualifying fertility expenses, such as egg or sperm preservation, artificial insemination, IVF and related procedures, embryo genetic testing, fertility medications, and gamete donation. This would apply to distributions made after December 31, 2025, and plans would treat these distributions as non-rollover plan distributions under the tax code.
Sponsors & CoSponsors
Sponsor
Levin, Mike [D-CA-49]
CA • D
Cosponsors
Rep. Carey, Mike [R-OH-15]
OH • R
Sponsored 7/16/2026
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov