RoseNJ
Level 1
04-07-2021
04:31 PM
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My client took a distribution from his reitrement acct. after his company directed them to do so without penalty if it was related in some way to covid.
But I cna't find an exception code to use to avoid the $10k penalty that it typcial on early distributions.
Has anyone found one?
Pat Levins
abctax55
Level 15
04-07-2021
05:19 PM
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What software are you using?
HumanKind... Be Both
qbteachmt
Level 15
04-07-2021
06:07 PM
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You are asking about disaster distributions.
Yes, most retirement accounts qualify; no, 529 plans don't qualify. A 529 plan is not a retirement plan. It's a school savings plan.
There is no $10k penalty. Perhaps you are asking about the 10% early withdrawal penalty.
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