Question about Birth and Adoption Early Withdrawal from 401k

[pstauduhar]

I made a withdrawal from my 401k in September prior to the birth of my daughter in October. Would i still qualify for the SECURE act Qualified Birth and Adoption Early Withdrawal from 401k or does it have to the distribution literally have to be after the birth. They were both in the same tax year, so i assume it's OK.

 Thanks!

[dmertz · Accepted solution]

A distribution obtained before the day of the birth would not qualify.  Section 72(t)(2)(H) defines a qualified birth or adoption distribution as follows:

The term “qualified birth or adoption distribution” means any distribution from an applicable eligible retirement plan to an individual if made during the 1-year period beginning on the date on which a child of the individual is born or on which the legal adoption by the individual of an eligible adoptee is finalized.

[pstauduhar]

How is that verified though? I don't believe that either my 1095-R  or 1040 have that level of detail

[dmertz]

The IRS largely depends on the honesty of taxpayers.  Without an audit or questioning the claim, the IRS is probably unlikely to discover a fraudulent claim that the distribution is a qualified birth or adoption distribution.

[Opus 17]

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@pstauduhar wrote:

How is that verified though? I don't believe that either my 1095-R  or 1040 have that level of detail

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The rules say what they say.  It's not really our job to say "the rules say this, but if you break the rules you probably won't get caught."  That's a risk for you to decide to take or not take.