@montebach wrote:
My wife and I were laid off due to COVID cutbacks in October 2020. We still didn’t have jobs in early 2021, so she cashed out her small 403b balance in February 2021 (less than $10K) to pay living expenses.
My understanding is that the Consolidated Appropriations Act extended the CARES act provisions waiving the 10% penalty tax on retirement plan distributions. However, Turbo Tax doesn’t reflect this or have a form to fill out for Emergency withdrawals. Is there a form coming from the IRS for this, too?
The exception to the 10% early distribution penalty for Coronavirus was only for tax year 2020. It does not apply for distributions made in 2021.
