Fertility Cost Relief Act

Key Points

• The bill would let people withdraw money from retirement accounts like 401(k)s and IRAs to pay for fertility treatments without paying the usual 10 percent early withdrawal tax penalty.
• People could withdraw up to $20,000 total over their lifetime for these expenses, and that cap would rise with inflation starting in 2027.
• Covered expenses include a wide range of fertility care such as IVF, egg and sperm freezing, artificial insemination, fertility medications, embryo genetic testing, and gamete donation.
• To qualify for the tax break, the withdrawn money must be spent on fertility treatment within one year of taking it out of the account.
• People who take the money out are allowed to repay it back into their retirement account later, similar to existing rules for birth and adoption withdrawals.
• If passed, the change would apply retroactively to withdrawals made after the end of 2025.