Fertility Cost Relief Act

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9753 Introduced in House (IH)]

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119th CONGRESS
  2d Session
                                H. R. 9753

To amend the Internal Revenue Code of 1986 to exempt certain retirement
 plan distributions used to pay qualified fertility treatment expenses
                     from the early withdrawal tax.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             July 16, 2026

 Mr. Levin (for himself and Mr. Carey) introduced the following bill;
         which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL

To amend the Internal Revenue Code of 1986 to exempt certain retirement
 plan distributions used to pay qualified fertility treatment expenses
                     from the early withdrawal tax.

    Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Fertility Cost Relief Act''.

SEC. 2. DISTRIBUTIONS FOR QUALIFIED FERTILITY TREATMENT EXPENSES
              EXEMPTED FROM EARLY WITHDRAWAL TAX.

    (a) In General.--Section 72(t)(2) of the Internal Revenue Code of
1986 is amended by adding at the end the following new subparagraph:
                    ``(O) Qualified fertility treatment
                distributions.--
                            ``(i) In general.--Any qualified fertility
                        treatment distribution.
                            ``(ii) Lifetime dollar limitation.--
                                    ``(I) In general.--The aggregate
                                amount of distributions received by an
                                individual which may be treated as
                                qualified fertility treatment
                                distributions for any taxable year
                                shall not exceed the excess (if any)
                                of--
                                            ``(aa) $20,000, over
                                            ``(bb) the aggregate
                                        amounts treated as qualified
                                        fertility treatment
                                        distributions with respect to
                                        such individual for all prior
                                        taxable years.
                                    ``(II) Inflation adjustment.--In
                                the case of a taxable year beginning in
                                a calendar year after 2026, the $20,000
                                amount in subclause (I)(aa) shall be
                                increased by an amount equal to--
                                            ``(aa) such dollar amount,
                                        multiplied by
                                            ``(bb) the cost-of-living
                                        adjustment determined under
                                        section 1(f)(3) for the
                                        calendar year in which the
                                        taxable year begins, determined
                                        by substituting `calendar year
                                        2025' for `calendar year 2016'
                                        in subparagraph (A)(ii)
                                        thereof.
                            ``(iii) Qualified fertility treatment
                        distribution.--For purposes of this
                        subparagraph--
                                    ``(I) In general.--The term
                                `qualified fertility treatment
                                distribution' means any distribution
                                received by an individual from an
                                applicable eligible retirement plan to
                                the extent such distribution is used,
                                within 1 year of the date on which such
                                distribution is received, to pay
                                qualified fertility treatment expenses
                                for the individual or the spouse or
                                domestic partner of the individual.
                                    ``(II) Qualified fertility
                                treatment expenses.--The term
                                `qualified fertility treatment
                                expenses' means any expenses for--
                                            ``(aa) the preservation of
                                        human oocytes, sperm, or
                                        embryos,
                                            ``(bb) artificial
                                        insemination, including
                                        intravaginal, intracervical,
                                        and intrauterine insemination,
                                            ``(cc) assisted
                                        reproductive technology,
                                        including in vitro
                                        fertilization and other
                                        treatments or procedures in
                                        which oocytes, sperm,
                                        fertilized eggs, embryos, or
                                        other reproductive genetic
                                        materials are handled,
                                            ``(dd) the genetic testing
                                        of embryos,
                                            ``(ee) fertility
                                        medications,
                                            ``(ff) gamete donation, or
                                            ``(gg) such other fertility
                                        treatments, procedures,
                                        medications, or services as
                                        determined appropriate in
                                        accordance with regulations
                                        prescribed by the Secretary of
                                        Health and Human Services.
                                    ``(III) Applicable eligible
                                retirement plan.--The term `applicable
                                eligible retirement plan' means an
                                eligible retirement plan (as defined in
                                section 402(c)(8)(B)) other than a
                                defined benefit plan.
                            ``(iv) Treatment of plan distributions.--If
                        a distribution to an individual would (without
                        regard to clause (ii)) be a qualified fertility
                        treatment distribution, a plan shall not be
                        treated as failing to meet any requirement of
                        this title merely because the plan treats the
                        distribution as a qualified fertility treatment
                        distribution, unless the aggregate amount of
                        such distributions from all plans maintained by
                        the employer (and any member of any controlled
                        group which includes the employer, determined
                        as provided in subparagraph (H)(iv)(II)) to
                        such individual exceeds the limitation under
                        clause (ii).
                            ``(v) Amount distributed may be repaid.--
                        Rules similar to the rules of subparagraph
                        (H)(v) shall apply with respect to an
                        individual who receives a qualified fertility
                        treatment distribution.
                            ``(vi) Special rules.--For purposes of this
                        subparagraph--
                                    ``(I) Exemption of distributions
                                from trustee to trustee transfer and
                                withholding rules.--For purposes of
                                sections 401(a)(31), 402(f), and 3405,
                                a qualified fertility treatment
                                distribution shall not be treated as an
                                eligible rollover distribution.
                                    ``(II) Distributions treated as
                                meeting plan distribution
                                requirements.--Any qualified fertility
                                treatment distribution shall be treated
                                as meeting the requirements of sections
                                401(k)(2)(B)(i), 403(b)(7)(A)(i),
                                403(b)(11), and 457(d)(1)(A).''.
    (b) Effective Date.--The amendment made by subsection (a) shall
apply with respect to distributions made after December 31, 2025.
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