At a glance
- The coalition wrote to Senate Finance Chairman Mike Crapo and ranking member Ron Wyden.
- The bill would lift the disaster requirement for theft-loss deductions, let victims deduct losses above 10% of adjusted gross income, and apply to losses incurred after Dec. 31, 2020.
- A client scammed into emptying an IRA owes income tax on the distribution and, if under 59½, a 10% early-withdrawal penalty; H.R. 9500 would waive that penalty for certain fraud-related withdrawals.
The CFP Board joined a 52-member coalition urging the Senate to pass H.R. 9500, the Tax Relief for Fraud Victims Act, before the year ends, InvestmentNews reported. The coalition wrote to Senate Finance Chairman Mike Crapo and ranking member Ron Wyden. Members include AARP, SIFMA, the Investment Company Institute, the Investment Adviser Association and the Financial Planning Association.
The House passed the bill 408-17 in September, but the bill dies if the Senate does not act before Congress adjourns. The bill would lift the disaster requirement for theft-loss deductions, let victims deduct losses above 10% of adjusted gross income, and apply to losses incurred after Dec. 31, 2020. It would also waive the 10% early-withdrawal penalty for certain fraud-related IRA withdrawals.
A client scammed into emptying an IRA owes income tax on the distribution and, if under 59½, a 10% early-withdrawal penalty; H.R. 9500 would waive that penalty for certain fraud-related withdrawals. The retirement penalty waiver may matter most to advisors, InvestmentNews said.
Reported by the RIA desk from InvestmentNews. Published . Corrections