H.R. 9753: Fertility Cost Relief Act

This bill would let people withdraw money from certain retirement accounts without paying the usual 10% early-withdrawal tax penalty if the money is used for qualified fertility treatment expenses.

What counts as qualified fertility treatment expenses

The bill defines these expenses to include costs for:

• Preserving eggs, sperm, or embryos
• Artificial insemination
• Assisted reproductive technology, including in vitro fertilization (IVF)
• Genetic testing of embryos
• Fertility medications
• Gamete donation
• Other fertility-related treatments, procedures, medications, or services that the Secretary of Health and Human Services later approves by regulation

Which retirement accounts are covered

The tax break would apply to distributions from most eligible retirement plans, but not defined benefit pension plans. In plain terms, it would cover accounts such as many 401(k)-type and similar retirement plans.

Limits and timing

• A person could treat up to $20,000 in total as qualified fertility treatment distributions.
• This limit would be lifetime-based, meaning amounts used in earlier years reduce the remaining amount available later.
• The $20,000 cap would be adjusted for inflation starting with tax years after 2026.
• The money would have to be used for fertility treatment expenses within 1 year of receiving the distribution.

Other tax rules

• Plans would be allowed to treat these withdrawals as qualified fertility treatment distributions without violating certain retirement plan rules, as long as the overall limit is not exceeded.
• The bill says repayment rules similar to those for certain other retirement withdrawals would apply, meaning some people may be able to repay the amount under rules that mirror existing law.
• These distributions would not be treated as ordinary rollover-eligible withdrawals for certain withholding and notice rules.

When it would take effect

The bill would apply to distributions made after December 31, 2025.

Relevant Companies

None found