MaryK4
Expert Alumni

Retirement tax questions

First of all do not be confused- your distribution was from a 401(k) NOT an IRA.  It makes a bug difference.

 

There is a one distribution per calendar year for personal or family emergency expenses, up to the lesser of $1,000 or vested account balance over $1,000 (made after 12/31/2023)

 

For the Disaster recovery distribution: A qualified disaster recovery distribution is a distribution to a qualified individual that is made from an eligible retirement plan on or after the first day of the incident period of a qualified disaster and before the date that is 180 days after the latest of the following three dates:

  • Dec. 29, 2022
  • The first day of the incident period with respect to the qualified disaster, or
  • The date of the disaster declaration with respect to the qualified disaster.

See Access retirement funds in a disaster | Internal Revenue Service.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"