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

RoseNJ
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

0 Cheers
2 Replies 2
abctax55
Level 15

What software are you using?

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


If a post answers your question, click on *Accept as solution* for future searches
qbteachmt
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.

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