To qualify for the favorable tax treatment of a retirement distribution the following must be true.
Qualified Individual: The distribution was made to a qualified individual. A qualified individual meets at least one of the following characteristics:
- You, your spouse, and/or dependent was diagnosed with the virus SARS-CoV-2 or with coronavirus disease 2019 (collectively referred to as coronavirus) by a CDC-approved test
- You, your spouse, and/or a member of your household (anyone who shares your main home) experience unfavorable financial consequences as a result of one of the following occurring due to coronavirus:
- Begin quarantined, furloughed, laid-off or experiencing a reduction in work hours
- Unable to work due to lack of childcare,
- Closed or reduced hours of a business you owned or operated,
- Reduced pay or self-employment income
- Job offer rescinded, or
- Job start date delayed