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Level 2
April 7, 2021

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

  • April 7, 2021
  • 2 replies
  • 12 views

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

    This topic has been closed for replies.

    2 replies

    abctax55
    Level 15
    April 7, 2021

    What software are you using?

    HumanKind... Be Both
    qbteachmt
    Level 15
    April 7, 2021

    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.

    Don't yell at us; we're volunteers