LEGISLATIVE RESOLUTION urging the New York State Congressional deleg-
ation to enact legislation to authorize the IRS to temporarily waive
penalties for taxpayers who made early withdrawals from their retirement
accounts due to financial hardships caused by Superstorm Sandy, retroac-
tive to the 2012 tax year

WHEREAS, Individuals who take an early distribution from a qualified
retirement plan are subject to an additional l0% tax penalty; and
WHEREAS, In the past, Congress has allowed this type of exemption for
individuals, including the Katrina Emergency Tax Relief Act of 2005,
which created an exception for victims of Hurricane Katrina (later
expanded to include Hurricanes Rita and Wilma) and the Heartland Disas-
ter Tax Relief Act of 2008 which created an exemption for victims of the
severe storms, flooding and tornadoes that occurred in the Midwest; and
WHEREAS, Superstorm Sandy has created significant financial hardships
for many families trying to rebuild or repair their homes that were
damaged or destroyed; and
WHEREAS, As a result, many families have been forced to tap into their
retirement accounts as they await payments from insurance policies or to
cover other unexpected expenses; and
WHEREAS, Current law discourages early withdrawal from retirement
plans by imposing a 10% tax penalty, but during disasters like Super-
storm Sandy, families should be able to access all of their resources
without being penalized; now, therefore, be it
RESOLVED, That the New York State Congressional delegation be and
hereby is respectfully memorialized by this Legislative Body to author-
ize the IRS to temporarily waive penalties for taxpayers who made early
withdrawals from their retirement accounts due to financial hardships
caused by Superstorm Sandy, retroactive to the 2012 tax year; and be it
further
RESOLVED, That copies of this Resolution, suitably engrossed, be tran-
smitted to each member of the Congressional delegation from the State of
New York.