I copied this from a CPA website - can anyone give me corroboration from any other accountants?
Effective under the Consolidated Appropriations Act (CAA) signed by President Trump on December 27, 2020, the IRA 10% early withdrawal penalty waiver on Qualified Disaster Distributions was allowed for 180 days from enactment of the bill (6/25/21). The tax-favored withdrawal from IRAs applies to distributions made by individuals who are impacted within any type of federally declared disaster area between January 1, 2020, and 60 days after the enactment of the bill (approximately February 25, 2021). The Act specifically excludes COVID-19 as a qualified disaster.
What this means specifically for our Texas-based residents, is that the Texas Freeze of 2021 qualifies you to be eligible for the tax-favored withdrawals from retirement plans as President Biden approved the disaster declaration as of February 20, 2021. Therefore, along with the waiver of the 10% early withdrawal penalty on up to $100,000 of qualified distributions, the CAA also allows for the repayment of the funds from the IRA within a 3 year period to be treated similar to a 60-day trustee to trustee transfer. This additional benefit provides taxpayers the option of receiving a tax refund on the ordinary income taxes that are paid on the early withdrawal distributions from their traditional IRAs if they choose to recontribute the funds within the required timeline.
