Hello,

I have a client who took out a retirement distribution before the age of 59 1/2 to put down a down payment on a new home (first time home buyer), and am looking for a little feedback regarding the taxation and elimination of the 10% early withdrawal penalty. I know that under the CARES act if you are considered a "qualified person" the IRS will waive 10% early withdrawal penalty and the taxation of the distribution can be spread out over 3 years. My question mainly pertains to who qualifies as a "qualified individual." I have read who qualifies on the IRS website, but it is not totally clear. My client was forced to work from home due to COVID but did not get COVID, have a roommate who had COVID,  nor did their income/hours drop as a result of COVID. Would the fact that they were forced to quarantine throughout the year be enough to qualify them as a "qualified person?" 

Also, does anyone know how to enter this into Lacerte?

Thank you,

Martin