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New Member
posted Jul 4, 2020 4:47:41 PM

I withdraw money from my 401(k) in October 2019 being affective this year by the coronavirus am I exempt from the penalty

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2 Replies
Level 15
Jul 4, 2020 5:04:10 PM

No ... 2019 distributions are not exempt from taxes or penalties. 

Level 15
Jul 4, 2020 5:05:05 PM

Your distribution taken during 2019 is not exempt from any of the early withdrawal penalties for COVID.  If you were under the age of 59 1/2 when you took the money out in 2019 you are subject to the 10% early withdrawal penalty and ordinary income tax.  The CARES act pertains to a withdrawal in 2020.