Brown Joins Colleagues in Introducing Bill to Provide Financial Options for Government Contractors Harmed by Shutdown
"Every day
The Emergency Relief for Federal Contractors Act would:
* Waive the 10 Percent Early Distribution Penalty. Under current law, retirement savers who are age 59 1/2 or younger may be subject to an additional 10 percent early withdrawal penalty for taking a hardship withdrawal from their retirement account or an early distribution from their individual retirement account (IRA). The Emergency Relief for Federal Contractors Act would waive this additional 10 percent penalty. Government contractors who take a hardship withdrawal would still be responsible for paying any other taxes that are due on the amount of withdrawal.
* Allow for Recontribution of Qualified Shutdown Distribution. In order to restore workers' retirement savings after the shutdown ends, the Emergency Relief for Federal Contractors Act would allow government contractors who take a hardship distribution from their retirement plans or an early distribution from their IRAs to recontribute some or all of the distribution (up to
* Allow for Income Inclusion to be Spread over a Three-Year Period. For government contractors who choose not to recontribute their qualified shutdown distribution, this bill would allow such individuals to include the amount of their qualified shutdown distributions ratably over a three-taxable-year period.
Brown has been fighting to protect federal workers and federal contractors harmed by the government shutdown. In January, he introduced the Fair Compensation for Low-Wage Contractor Employees Act, which would ensure federal contractors get reimbursed for providing back pay, up to 200% of the federal poverty level for a family of four and provide accountability in the equitable adjustment process by including ways for protection of taxpayers funds. Many of these contractors make too little to begin with and are paid hourly. Because they are unable to clock hours, these workers often do not receive back pay and are typically unable to recoup lost hours and wages during a shutdown.
Brown also joined his colleagues in calling on the three credit reporting agencies - Equifax, Experian, and
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