S. 2962 · 116th Congress
HELPER Act of 2019
- Stage
- In committee
- Sponsor
- Rand Paul
- Introduced
- 2019-12-02
- Latest action
- 2019-12-02 · Introduced in Senate
Summary
Higher Education Loan Payment and Enhanced Retirement Act of 2019 or the HELPER Act of 2019
This bill permits annual tax and penalty-free withdrawals of up to $5,250 from 401(k) plans for higher education expenses and penalty-free withdrawals from individual retirement accounts (IRAs) for student loan expenses.
The bill also excludes from gross income, for income tax purposes, distributions up to $5,250 from employer-sponsored student loan and tuition payment plans. It repeals the limitation on the deduction of interest on student loans and increases from $15,000 to $25,000 (adjusted for inflation) the maximum contribution amounts for certain tax-preferred retirement plans.
The bill allows employees an election to treat contributions to a 401(k) plan as Roth contributions (thus exempting withdrawals from such plans from tax at retirement).