topic Regarding IRAs and the CARES Act, If your spouse gets furloughed because of covid, can you make a corona virus related withdrawal without penalty? in Retirement tax questions

Regarding IRAs and the CARES Act, If your spouse gets furloughed because of covid, can you make a corona virus related withdrawal without penalty?

jon3 — Fri, 18 Dec 2020 15:39:15 GMT

Also, how would you file that on your tax return if you can make that withdrawal?

Re: Regarding IRAs and the CARES Act, If your spouse gets furloughed because of covid, can you make a corona virus related withdrawal without penalty?

Bsch4477 — Fri, 18 Dec 2020 16:04:17 GMT

Yes, while there would be no penalty she would have to pay income tax but even that can be paid over a 3 year period. The details are here:

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

I don’t know how TurboTax will handle this but there will probably be interview widows to deal with that.

Re: Regarding IRAs and the CARES Act, If your spouse gets furloughed because of covid, can you make a corona virus related withdrawal without penalty?

jon3 — Fri, 18 Dec 2020 16:05:55 GMT

Thank you @Bsch4477 !

Re: Regarding IRAs and the CARES Act, If your spouse gets furloughed because of covid, can you make a corona virus related withdrawal without penalty?

macuser_22 — Fri, 18 Dec 2020 16:32:31 GMT

Note, that this will be reported on a new 8915-E form that is currently underdevelopment by the IRS but will be part of the 2020 TurboTax when available. Any CARES act distribution must be completed by Dec 31, 2020 so with the holidays and non-banking days, don't wait until the last minute or it might not get posted until Jan 2021 and would not qualify.