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I had to withdraw from my 401K early due to permanent shutdown. The shutdown was due to COVID19. How can I claim that exemption?

 
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1 Reply
ThomasM125
Expert Alumni

I had to withdraw from my 401K early due to permanent shutdown. The shutdown was due to COVID19. How can I claim that exemption?

You can claim exemption from the 10% penalty for early withdrawal, plus you can have the distribution taxable evenly over three years. You can read about the requirements here:

 

https://www.irs.gov/newsroom/coronavirus-related-relief-for-retirement-plans-and-iras-questions-and-...

 

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