No. The CARES Act provides special tax treatment for up to $100,000 in distributions from all 401(a), 401(k), 403(a), 403(b), and governmental 457(b) plans and individual retirement accounts (IRAs) made to qualified individuals on and after January 1, 2020, and before December 31, 2020.
If you are a qualified individual, the taxable portion of a distribution that qualifies as a CARES
Act Distribution may be spread evenly over a three-year period starting with 2020 on your federal income tax
return, unless you elect to have it all taxed in 2020.
No. The CARES Act provides special tax treatment for up to $100,000 in distributions from all 401(a), 401(k), 403(a), 403(b), and governmental 457(b) plans and individual retirement accounts (IRAs) made to qualified individuals on and after January 1, 2020, and before December 31, 2020.
If you are a qualified individual, the taxable portion of a distribution that qualifies as a CARES
Act Distribution may be spread evenly over a three-year period starting with 2020 on your federal income tax
return, unless you elect to have it all taxed in 2020.
Separate. If you are affected by any federally declared natural disaster, you can take money out from retirement plans with special rules. Covid is not a federally declared natural disaster under these special rules, but a different set of special rules was passed by Congress to cover Covid. The two are reported on the same form, so TurboTax needs to know if you took out a previous disaster distribution, such as for a hurricane or wildfire.