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New Member
posted Apr 7, 2024 4:56:14 PM

"Did you take a disaster distribution for a disaster that occurred in 2019-2022?" Are they referring to covid 19 stimulus checks or is this something different?

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Expert Alumni
Apr 8, 2024 2:07:02 PM

No, that question isn't a reference to the Stimulus checks that were mailed to individuals between 2019 and 2022.

 

It's referring to distributions that taxpayers took from a retirement plan due to qualified disasters (the president declares federally qualified disasters).  For qualified disasters, the Secure Act 2.0 lets you spread the taxable amount over 3 years and waives the early withdrawal penalty.  For distributions due to COVID 19 or financial issues due to the pandemic, the Cares Act lets you spread the taxable distribution over 3 years and waives the early distribution penalty as well.

 

For more information, refer to the TurboTax articles 2020 Stimulus: Tax Relief for This Year's Taxes, How do I use Form 8915 to report my 2020 COVID-related retirement distributions? and What is Form 8915-F Qualified Disaster Retirement Plan Distributions and Repayments?