I left a job with my state just as the pandemic was ramping up in late January. Part of the separation process was that I took my 401k distribution with me. I was going to roll it into a 403B at my new employer, but I caught COVID the week I finally received the distribution and ended up using much of it to keep finances up.
When I was filing the 1099-R, it asks if I took the distribution for COVID-related purposes. I meet all of the requirements of the CARES ACT. I called the state and they didn't have an answer. Would I be able to take the distribution as a COVID distribution? I paid all the taxes on it when I left along with the penalty, so either way, I am good, but I am sure I am not the only one in this pickle.
