Most domestic abuse victims don’t know about this tax provision — do you?

This year, a little-known clause in the SECURE 2.0 Act is quietly reshaping financial safety nets for survivors of domestic abuse. For the first time, individuals facing abuse can access their retirement savings without facing the usual early withdrawal penalties.

It’s a lifeline — but almost no one is talking about it.

Why This Matters

Escaping an abusive situation often comes with immense financial hurdles. From securing housing to covering legal fees, the costs can feel insurmountable. Traditionally, tapping into retirement savings has been a last resort, made even more punishing by hefty penalties. But now, survivors have a new option.

Under the SECURE 2.0 Act, eligible individuals can withdraw from their retirement funds penalty-free. While this doesn’t erase the financial burden, it provides breathing room — a chance to stabilize, regroup, and rebuild.

According to the IRS (Notice N-24–55): “Section 314 of the SECURE 2.0 Act amended section 72(t)(2) by adding section 72(t)(2)(K), which provides a new exception to the 10 percent additional tax for an eligible distribution to a domestic abuse victim (domestic abuse victim distribution). A domestic abuse victim distribution is includible in gross income…