TaxBuzz Guides
Categories
401(k) Plan Tax Overview

Need help selecting a firm?

Tell us about your project and get introduced to the best accounting and tax firm for your needs.

Get Started

Qualified Disaster Distributions

The Taxpayer Certainty and Disaster Tax Relief Act of 2020 creates a “Qualified Disaster Distribution” (Act Sec 302(a)) that allows qualified taxpayers who have sustained an economic loss because of a qualified disaster to withdraw from their eligible retirement plans, including IRAs, up to $100,000 less the aggregate amounts treated as qualified disaster distributions the taxpayer received for all prior taxable years. The taxpayer’s principal place of abode at any time during the incident period must be located in the qualified disaster area and the individual must have sustained an economic loss by reason of the qualified disaster. Only distributions made on or after the first day of the incident period of a qualified disaster and before the date which is 180 days after December 27, 2020, can qualify. The distribution income can be spread over 3 years and the taxpayer has the option to re-contribute the distribution amount to a qualified plan within 3 years of the distribution. 

Previous Topic:   Special Rules Federally Declared Disasters
Next Topic:   Employee Plan Loans

TaxBuzz Guides

Pensions & Annuities Tax Overview
RMD & Annuity Tables Overview
Lump Sum Distributions
Retirement Rollovers Overview
Traditional IRA
Roth IRA Tax Overview
IRA Comparison Chart
IRA Early Withdrawal Exception
Self-Employed Retirement Plans
IRS Form 5500-EZ Filing Requirement
Simplified Employee Pension Plans
401(k) Plan Tax Overview
Tax Sheltered Annuities 403B
Flexible Spending Accounts
Required Minimum Distributions
Solo 401K Plans
Deferred Compensation Plans – Sec 457
Simple Plans
Health Savings Accounts
CalSavers Retirement Savings Program