The Shrinking Emergency Account Losses (SEAL) Act, sponsored by U.S. Sens. Bill Nelson (D-Fla.) and Mike Enzi (R-Wyo.), is before the Senate again. The bill, originally proposed in 2011, would give 401(k) participants who borrow against their 401(k) retirement plans more time to replenish their accounts after leaving a job.
Specifically, the measure would give workers who leave their jobs up until they file their federal taxes to repay money they’ve taken out of their company’s retirement plan. Under current law, workers have 60 days to repay any loans or withdrawals following their separation to avoid paying tax penalties.
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