topic Can I withdraw up to $100K from my IRA in response to the Disaster Tax Relief Act of 2017. I am currently taking SEPP out of my retirement, which are penalty free? in Retirement tax questions

Can I withdraw up to $100K from my IRA in response to the Disaster Tax Relief Act of 2017. I am currently taking SEPP out of my retirement, which are penalty free?

mae1- — Tue, 04 Jun 2019 20:08:13 GMT

A qualified disaster distribution is not considered to be...

dmertz — Tue, 04 Jun 2019 20:08:14 GMT

A qualified disaster distribution is not considered to be a modification of the SEPP plan. From IRS Pub 590-B:

Qualified disaster distributions aren’t subject to the 10% additional tax (or the additional 25% tax for certain distributions from SIMPLE IRAs) on early distributions from qualified retirement plans (including IRAs). Also, if you are receiving substantially equal periodic payments from a qualified retirement plan, the receipt of a qualified disaster distribution from that plan will not be treated as a change in those substantially equal payments merely because of the qualified disaster distribution. However, any distributions you received in excess of the $100,000 qualified disaster distribution limit may be subject to the additional tax on early distributions.

Pub 590-B: https://www.irs.gov/publications/p590b#en_US_2017_publink100073843

In TurboTax, report the same amount as eligible for the S...

dmertz — Tue, 04 Jun 2019 20:08:16 GMT

In TurboTax, report the same amount as eligible for the SEPP exception as you would if you receive no qualified disaster distribution. Any additional amounts (up to $100,000 additional) would be reported as qualifying for the disaster exception.