After years of trying to conceive a child naturally, without success, Lea and Walter Bishop turned to in vitro fertilization to start their family.
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But the San Diego couple was soon shocked by just how expensive that procedure would be, despite having what they thought was pretty decent health insurance. Walter Bishop considered taking money out of his retirement account to help foot the $25,000 bill — but opted not to incur the early withdrawal penalty and instead turned to his parents for financial help.
But a newly introduced bill in Congress would aim to help families like the Bishops, allowing them to withdraw up to $20,000 penalty-free from their retirement accounts to pay for the cost of fertility treatments.
“It’s just a very simple principle that nobody should have to go into debt to start a family,” bill sponsor Rep. Mike Levin, D-San Juan Capistrano, said. “Ideally, insurance should cover fertility treatments, but we don’t have a federal law that accomplishes that, so this is an important stepping stone.”
After five failed rounds of intrauterine insemination, Walter and Lea Bishop turned to IVF, an assistive reproductive technology that can cost Californians tens of thousands of dollars, according to the Los Angeles-based Pacific Fertility Center.
“I was blown away,” Walter Bishop said about the cost. “My wife has great health insurance through her employer, and they helped pick up some of the tab on IVF, but it was still just exorbitantly expensive.”
Bishop said he would have seriously considered taking money out of his retirement account, if there wasn’t an early withdrawal penalty.
Under current law, there is a 10% early withdrawal penalty for individuals who want to take money out of their retirement accounts before the age of 59 and a half.
There are some exceptions already: People can withdraw up to $5,000 per child penalty-free for birth or adoption expenses within one year of the event taking place.
Penalty-free withdrawals for other life events and emergencies are also allowed, such as first-time homebuying deposits, higher education expenses and permanent disability care.
“I was shocked that there was no existing exemption,” Bishop said about fertility treatment.
The best option left for the Bishops was to take a loan from his parents. Lea Bishop was in her late 30s at the time, and the two knew the longer they waited, the fewer options they’d have, Walter Bishop said.
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After two rounds of treatment beginning in February 2025, the couple was successful.
Walter Bishop V was born in late March.
“We were lucky to be successful on the second try,” Walter Bishop said. “I’ve had friends who have gone through this six, seven or eight times and still not be successful.”
As the director of government affairs for San Diego Mayor Todd Gloria, Bishop has worked closely with national and state lawmakers. He decided to bring up his experience to Levin and suggest a solution.
Joining Levin in co-sponsoring the bill is Republican Ohio Rep. Mike Carey. It would encompass any medical expenses arising from fertility treatment.
“There is precedent for that,” Levin said, noting the already existing exemptions for penalties for withdrawing from retirement accounts. “We thought this would be a good one, too. I think it’s a good starting place for us to try to relieve some of these burdens that people are facing.”
The bill is in the early stages of the legislative process. It sits in the Committee on Ways and Means, which oversees all revenue and tax bills.
“We’re working to increase the number of sponsors from both parties,” Levin said. “We’re circulating the draft for review and discussion by our stakeholders and by our colleagues.”
Walter Bishop says couples who identify across the political spectrum — Republicans, Democrats, independents and others, alike — have experienced struggles with starting a family.
“I think if we talk about this more, the pushback on some of the stuff would be far more limited,” he said. “That will lead to more coverage, lower cost, and affordable opportunities for folks.”
Both Levin and Bishop agree this bill is the first step toward embedding fertility treatments into health insurance and making it more affordable and accessible for Americans.
“I don’t think it’s a silver bullet, but it’s another tool in the toolbox to help make infertility treatment just a little easier,” Bishop said.
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