Am I considered qualified for early 401K withdrawal? I work in sales and acct mgmt. I am required to visit customer face to face. I have been unable since March.

[gcastel1]

I still get a salary but my quarterly bonus has been affected.

[Critter-3]

In general, section 2202 of the CARES Act provides for expanded distribution options and favorable tax treatment for up to $100,000 of coronavirus-related distributions from eligible retirement plans (certain employer retirement plans, such as section 401(k) and 403(b) plans, and IRAs) to qualified individuals, as well as special rollover rules with respect to such distributions.

It also increases the limit on the amount a qualified individual may borrow from an eligible retirement plan (not including an IRA) and permits a plan sponsor to provide qualified individuals up to an additional year to repay their plan loans.

You are a qualified individual if –

• You are diagnosed with the virus SARS-CoV-2 or with coronavirus disease 2019 (COVID-19) by a test approved by the Centers for Disease Control and Prevention;

• Your spouse or dependent is diagnosed with SARS-CoV-2 or with COVID-19 by a test approved by the Centers for Disease Control and Prevention;

• You experience adverse financial consequences as a result of being quarantined, being furloughed or laid off, or having work hours reduced due to SARS-CoV-2 or COVID-19;

• You experience adverse financial consequences as a result of being unable to work due to lack of child care due to SARS-CoV-2 or COVID-19; or

• You experience adverse financial consequences as a result of closing or reducing hours of a business that you own or operate due to SARS-CoV-2 or COVID-19.

Under section 2202 of the CARES Act, the Treasury Department and the IRS may issue guidance that expands the list of factors taken into account to determine whether an individual is a qualified individual as a result of experiencing adverse financial consequences. The Treasury Department and the IRS have received and are reviewing comments from the public requesting that the list of factors be expanded.

The 10% additional tax on early distributions does not apply to any coronavirus-related distribution.

Please see the IRS website: Coronavirus-related relief for retirement plans and IRAs questions and answers for further information.

The draft Form 8915-E for reporting Coronavirus-Related Distributions is here:  https://www.irs.gov/pub/irs-dft/f8915e--dft.pdf

The draft instructions are here:  https://www.irs.gov/pub/irs-dft/i8915e--dft.pdf

[Opus 17]

Only you can certify if you meet the conditions contained in the CARES act.  We don't have the 2020 tax forms yet, but there will probably be a box to check if you qualify.  You probably won't have to send proof of qualification, but you should keep any proof for 3 years after you file.