Accounting
AICPA Reinforces Support for Bipartisan Disaster Retirement Savings Act
Following its strong support of bipartisan Senate legislation – the Disaster Retirement Savings Act (S. 2583) – the American Institute of CPAs (AICPA) is echoing that support for companion bipartisan legislation in the House, introduced by ...
Dec. 10, 2021
Following its strong support of bipartisan Senate legislation – the Disaster Retirement Savings Act (S. 2583) – the American Institute of CPAs (AICPA) is echoing that support for companion bipartisan legislation in the House, introduced by Representatives Mike Thompson (D-CA) and Mike Kelly (R-PA).
Much like its Senate counterpart, the House Disaster Retirement Savings Act would permanently remove penalties for individuals impacted by natural disasters who choose to use retirement funds to cover unexpected expenses associated with those disasters.
The AICPA developed and submitted 10 recommendations designed to help homeowners and business owners alike with the expensive and lengthy process of recovery. These proposals will help to improve the process that currently exists and alleviate tax compliance burdens during and in the aftermath of a disaster. One of the recommendations proposed is addressed through this legislation.
“It’s encouraging to see such a strong, bipartisan effort from both chambers of Congress to ensure that taxpayers who have been impacted by disaster have greater access to resources to help them rebuild,” said AICPA VP of Taxation, Edward Karl, CPA, CGMA. “Allowing taxpayers to use their own funds, without penalty, during a critical time aligns with proposals the AICPA has advocated for and we’re grateful for the bipartisan support on this issue.”