Atlanta, GA - Senator Johnny Isakson and Representative Tom Graves introduced the HOME Act which would permit Americans to withdraw retirement funds from the 401(k) to make mortgage payments tax free. The long title is the "Hardship Outlays to Protect Mortgagee Equity Act of 2011".
The Act calls for allowing the withdrawals to make "qualified mortgage payments" on "qualified primary residences" within 120 days after the withdrawal from the retirement account is made. It allows for a lifetime maximum withdrawal, refered to as distributions, of $50,000 from the account and would only cover the tax year beginning in the year in which the Act is signed into law.
Neither the House nor the Senate has scheduled a vote on the proposed Act so if you are interested in more about it or seeing it passed a call to your Senator and Representative is warranted. Although the legislators are from Georgia this is a national law that would affect all Americans with a qualified primary residence and qualified mortgage - terms yet undefined within the Act.
The text of the Act is available at the website of Representative Tom Graves.
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