Did congress extend the penalty for 401k retirement withdrawals at the end of 2020 by 180 days? I found an article on Jacksonhewitt.com which said it was extended.

Unfortunately, no. There are several articles on the subject, as well as the bill itself, which refers to the extra 180 days relating to non-COVID disasters.

 

From Forbes:

 

Disaster-Related Early Withdrawals

The second stimulus bill offers retirement account holders the ability to take a penalty-free early withdrawal of up to $100,000 from their retirement accounts in 2021 because of a non-COVID-related disaster. “The language doesn’t exclude COVID-affected areas—it just can’t be a COVID-only disaster area, nor does COVID have to be involved at all,” says Washington.

 

From Lexicology

 

Qualified Disaster Distributions. The Act provides for "qualified disaster distributions" from eligible retirement plans. Qualified disaster distributions are treated similar to other types of disaster distributions and the coronavirus-related distributions that were permitted under the CARES Act (i.e., they are exempt from the 10% early distribution penalty, included in income ratably over 3 years, may be repaid, etc.).

• Definition of Qualified Disaster Distribution. A "qualified disaster distribution" means any distribution from an eligible retirement plan made—
  1. on or after the first day of the incident period of a qualified disaster and before the date which is 180 days after the date of the enactment of the Act [approximately June 25, 2021], and
  2. to an individual whose principal place of abode at any time during the incident period of such qualified disaster is located in the qualified disaster area with respect to such qualified disaster and who has sustained an economic loss by reason of such qualified disaster. This definition includes a number of critical terms.

 

COVID-19 Exception. A "qualified disaster area" does not include any area with respect to which such a major disaster has been so declared only by reason of COVID–19. A list of federally declared disaster is located at FEMA