topic Can I claim a disaster-related retirement distribution if it was taken in 2021 due to Covid restrictions, lockdowns, etc? in Get your taxes done using TurboTax

Can I claim a disaster-related retirement distribution if it was taken in 2021 due to Covid restrictions, lockdowns, etc?

JamesBKK26 — Mon, 09 Mar 2026 05:37:04 GMT

Re: Can I claim a disaster-related retirement distribution if it was taken in 2021 due to Covid r...

ZoltanB45 — Mon, 21 Feb 2022 19:51:08 GMT

Covid is not considered a qualified disaster for 2021. In order to use Covid to avoid the early withdrawal penalty, the distribution had to have been taken by December 31 , 2020. Here is a link with a little more guidance regarding the matter. early withdraw

Re: Can I claim a disaster-related retirement distribution if it was taken in 2021 due to Covid r...

JamesBKK26 — Mon, 21 Feb 2022 03:02:02 GMT

Thanks for the reply. So, based on what you are saying, if I took the distribution (received the funds) in March 2021, I can claim it as a Covid disaster-related distribution. Is that correct? Confusing because you stated Covid could not be considered a qualified disaster for 2021, but if I took the distribution in 2021, I can. Am I reading this wrong? Some further background, I am an American ex-pat living overseas. I am self-employed. Covid restrictions dramatically impacted my business (and income) throughout 2020 and 2021 in the country in which I live. By early 2021, I needed to take a distribution to survive financially through that calendar year.

Re: Can I claim a disaster-related retirement distribution if it was taken in 2021 due to Covid r...

JamesBKK26 — Mon, 21 Feb 2022 05:54:39 GMT

That is my question because FangxiaL stated, "In order to use Covid to avoid the early withdrawal penalty, the distribution had to have been taken by December 31 , 2021."

Re: Can I claim a disaster-related retirement distribution if it was taken in 2021 due to Covid r...

ColeenD3 — Mon, 21 Feb 2022 13:30:33 GMT

Per the IRS:

Qualified 2020 Disaster Distribution Requirements In order to be a qualified 2020 disaster distribution, the distribution must be a coronavirus-related distribution, that is,

1. The distribution was made in 2020 before December 31, 2020; and

2. The distribution was made to a qualified individual. See Qualified individuals next for details.

If (1) and (2) apply, you can generally designate any distribution (including periodic payments and required minimum distributions) from an eligible retirement plan as a qualified 2020 disaster distribution, regardless of why the distribution was made. Qualified 2020 disaster distributions are permitted without regard to your need.

QDD