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AICPA Supports Disaster Retirement Savings Act
The American Institute of CPAs (AICPA) is signaling strong support for the bipartisan Disaster Retirement Savings Act (S. 2583), introduced by Senators Bill Cassidy (R-LA) and Bob Menendez (D-NJ). The bill would permanently remove penalties for ...
Oct. 22, 2021
The American Institute of CPAs (AICPA) is signaling strong support for the bipartisan Disaster Retirement Savings Act (S. 2583), introduced by Senators Bill Cassidy (R-LA) and Bob Menendez (D-NJ). The bill would permanently remove penalties for individuals impacted by natural disasters who choose to use retirement funds to cover unexpected expenses associated with those disasters.
Currently, tax relief is only considered through separate, individual bills following each disaster. The AICPA has been a vocal advocate for a change in this process, urging Congress to enact permanent tax legislation that would take effect immediately following a declaration of a federal disaster.
The AICPA developed 10 recommendations to improve the patchwork situation that currently exists and alleviate tax compliance burdens during and in the aftermath of a disaster. These proposals are designed to help homeowners and business owners alike with the expensive and lengthy process of recovery. The Disaster Retirement Savings Act addresses one of these important recommendations.
“The Disaster Retirement Savings Act puts into legislation a proposal that the AICPA has advocated in favor of for several years,” said AICPA VP of Taxation, Edward Karl, CPA, CGMA. “Taxpayers already overwhelmed by a disaster should have the ability to use their own funds, without penalty, to help them begin the work of rebuilding while they wait for government assistance and insurance reimbursements.”