This bill amends the Internal Revenue Code of 1986 to permit certain penalty-free distributions from retirement plans for unemployed individuals. It introduces a new exception to the early distribution penalty for those who have received unemployment compensation for 26 consecutive weeks due to job separation, allowing these distributions during the taxable year unemployment benefits are received or the subsequent year. The amount of such penalty-free distributions is limited to the lesser of $50,000 (reduced by prior penalty-free withdrawals within one year) or the greater of $10,000 or half the aggregate fair market value of the individual's qualified retirement plans. This expansion aims to provide financial relief to long-term unemployed individuals by allowing access to their retirement savings without the usual early withdrawal penalty. The amendments apply to distributions made after December 31, 2024.