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Any new 529 exception due to covid to avoid the 10% penalty?

Level 1

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

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2 Replies 2
Level 15

What software are you using?

Former Chump..oops..AllStar...I used to be a people person, then people ruined it

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Level 15

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.

"Level Up" is a gaming function, not a real life function.