You'll need to sign in or create an account to connect with an expert.
Possibly, see 5th bullet below:
A3. You are a qualified individual if –
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.
Unless Congress passes a new coronavirus support package that changes the law, a CARES act qualified withdrawal must be completed by December 30. You probably need to start the withdrawal several days ahead because it may take your plan a few days to process the request. If you make the request on time but the withdrawal is not completed until January, then it won’t be eligible unless the law changes.
are you really sure this is wise? Most people recover from Covid in about two weeks, and your caregiver would be able to go back to work probably by the first week of January. And you may already be planning to take time off around Christmas, so you may not need that much care. Conservatively invested, $10,000 can quadruple into $40,000 over 30 years so if you are age 35 or so, and you withdrew $10,000 now, you would be depriving yourself of more than $40,000 in retirement. You may have other reasons to want to reduce your hours and stay home with your child, but have you really considered the long-term implications of your possible response to a short term emergency.
That is an excellent point. Many 401(k) trustees will take 5-7 days to process a distribution that requires special handling and with the weekends and holidays ahead, any such distribution needs to be taken very soon to have it applied to the 2020 tax year.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
burtoa524
New Member
kamarie-15
New Member
Melis3158
Level 1
NJ Resident
Level 1
ene777
Level 2
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.