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H.R. 8787 116th Congress House

STAR Act of 2020

Official title: To amend the Internal Revenue Code of 1986 to permit withdrawals from certain retirement plans for repayment of student loan debt, and for other purposes.

Introduced: November 19, 2020 See on congress.gov
Taxation Employee benefits and pensionsHigher educationIncome tax deductionsIncome tax deferral
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Income tax exclusionInflation and pricesInterest, dividends, interest ratesStudent aid and college costs
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This bill died when the 116th Congress ended
It never became law before the 116th Congress (2019–2020) adjourned, and bills don't carry over to the next Congress. It would have to be reintroduced. You can still save it for reference, but it won't receive updates.
 Everywhere this bill has been 2 steps
Introduced
In committee
Reported out
Passed House
Passed Senate
To President
Became law
Nov 19, 2020
Referred to the Committee on Ways and Means, and in addition to the Committee on Education and Labor, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Nov 19, 2020
Introduced in House
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 Latest action November 19, 2020

Referred to the Committee on Ways and Means, and in addition to the Committee on Education and Labor, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

 Plain-English summary Congressional Research Service

Student Aid and Tax Advantaged Accounts Reform Act of 2020 or the STAR Act of 2020.

This bill permits annual tax and penalty-free withdrawals of up to $5,250 from 401(k) plans for higher education expenses and penalty-free withdrawals from individual retirement accounts (IRAs) for student loan expenses of taxpayers, spouses, children, and grandchildren.

The bill also excludes from gross income, for income tax purposes, distributions up to $5,250 from employer-sponsored student loan and tuition payment plans. It repeals the limitation on the deduction of interest on student loans and increases from $15,000 to $25,000 (adjusted for inflation) the maximum contribution amounts for certain tax-preferred retirement plans.

The bill allows employees an election to treat contributions to a 401(k) plan as Roth contributions (thus exempting withdrawals from such plans from tax at retirement).

 Related & companion bills 1
 Bill text 1 version

Source documents hosted by congress.gov.

 Committees of jurisdiction 2
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APA
U.S. Congress. (2026). H.R. 8787: STAR Act of 2020. 116th Congress. Open America. https://openamerica.io/bill/116-HR-8787/
MLA
"H.R. 8787: STAR Act of 2020." 116th Congress, 2026, Open America, https://openamerica.io/bill/116-HR-8787/.
Bluebook (legal)
H.R. 8787, 116th Cong. (2026), https://openamerica.io/bill/116-HR-8787/.
Markdown link
[H.R. 8787: STAR Act of 2020](https://openamerica.io/bill/116-HR-8787/)
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