No Penalties for Victims of Fraud Act

Creates a new tax-code exception so people who withdraw money from certain retirement plans because they were victims of fraud can avoid the early withdrawal penalty and may repay the funds under rules similar to an existing recontribution provision. To qualify, individuals must document the fraud with a law enforcement or court record. It also directs the Treasury Department to issue clear guidance within 180 days on how to claim the penalty waiver and to start a public awareness campaign as soon as practicable after enactment. The change applies to distributions made after the law takes effect.