1099r

4 replies
33 views

I received a 1099 R at the end of January 2020 (pre-covid). I was unemployed at this time as I was let go from my prior employment. Does being laid off qualify as for 2020 disaster relief?

Thank you in advance.

RayW7

Alumni - Intuit

When the COVID pandemic hit and unemployment soared in 2020, Congress passed the CARES Act, which gave special tax treatment for eligible withdrawals from retirement accounts. The usual 10% penalty on early withdrawals before age 59-1/2 is waived.

-follow this link for additional information-

2021 Stimulus: Tax Relief for This Year's Taxes - TurboTax ...

-regarding unemployment, follow this link-

Unemployment Stimulus: Am I Eligible for the New ...

rjw0831Author

Level 2

Thank you RayW7 for the prompt response. I appreciate it. My distribution occurred prior to Covid. Does this matter?

LenaH

Alumni - Expert

Yes. The exclusion only applies if you had to take money from your retirement plan if you are a qualified individual impacted by coronavirus.

You are a qualified individual if:

You, your spouse, or dependent are diagnosed with COVID-19
You experience adverse financial consequences as a result of being quarantined, furloughed, or laid off
You had hours reduced due to coronavirus
You are unable to work due to your child care closing or reducing hours.

Since you took the distribution prior to Covid-19, then you would not qualify.

@rjw0831

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