I believe Consolidated Appropriations act 2021 extended penalty free withdrawals up to $100,000 to June 30, 2021. So if the withdrawals were made by that timeline ( June 30th or before), these withdrawals still qualify for penalty exemptions.

Just-Lisa-Now-

Intuit Community Champion

That was a 2020 deal, I dont think 2021 distributions were quite so lucky.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

qbteachmt

Level 15

The answer is No.

"if the money taken in 2021 was for covid reasons?"

There is no covid-declared disaster for 2021. That distribution is subject to ordinary tax and applicable penalty, unless it falls under one of the exceptions for 2021, in 2021, or this person qualifies to have no penalty.

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