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Section 72(t) of the Internal Revenue Code of 1986

The part of tax law that generally imposes an extra 10% penalty on withdrawals from retirement accounts made before age 59 and a half.

Federal Government shutdown distribution

A withdrawal from a retirement account made by certain individuals who are affected by a federal government shutdown, which this bill would exempt from the usual early withdrawal penalty.

Applicable individual

A person eligible for this relief, including federal contractors, their employees, certain state/grantee employees, and specific D.C. government employees, all of whom must be impacted by a federal government shutdown.

Federal appropriations lapse

A period of at least two continuous weeks during which the federal government does not have funding, leading to a shutdown or partial shutdown.

Eligible retirement plan

Various types of retirement savings accounts or plans, such as 401(k)s, 403(b)s, and IRAs, that can receive rollover contributions.

Taxable year

The annual accounting period for keeping records and reporting income and expenses, typically January 1 through December 31 for most individual taxpayers.