I had to switch jobs to a lower paying job due to COVID (not being able to handle the intense stress of a workload with a child) and had to withdraw from my 401K. Because I switched jobs towards the later qtr of 2020, the impact isn't so dramatic.
In terms of waving the early withdrew penalty as I took the withdraw in 2020, what proof do I need to show the IRS, other than I physically switch companies via my W2 forms?
How do I prove that I now have to take care of a child?
You don't need to provide any proof. You do need to fit the criteria below.
Those who qualify as individuals directly impacted by the pandemic will be able to withdraw up to $100k from their retirement accounts without facing the 10% early withdrawal penalty.
You qualify if:
The distribution would be taxed over 2020, 2021, and 2022. You’ll have that time to pay back the funds you withdrew, without the amount impacting that year’s cap on contributions, and if you pay back the amount within that time, you’ll be able to claim a refund on those taxes.