@fanfare wrote:
The COVID exception is not based on need.
It is based on whether you were affected by COVID.
"Affected" is defined by the Tax Code.
You also must be affected by COVID to avoid the 10% early withdrawal penalty,
This has nothing to do with the three-year spread-out.
The poster said the distribution code was 2 so there is no penalty. Unless they want to spread the tax or repay the distribution there is nothing to be gained by claiming a COVID distribution.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
