Natural Disaster Tax Relief Act of 2023

Natural Disaster Tax Relief Act of 2023

This bill sets forth tax relief provisions for individual taxpayers for losses resulting from a major disaster occurring in 2023.

Specifically, the bill

• allows penalty-free disaster-relief withdrawals from tax-exempt retirement plans up to $100,000,
• permits recontributions of such withdrawals for home purchases or construction cancelled due to the disaster,
• increases to $100,000 the limit on loans for disaster assistance from retirement plans, and
• enhances the tax deduction for disaster-related personal casualty losses.