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COVID-related Distribution


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If someone under the age of 59.5 wishes to take a withdrawal based on the CARES Act, are they still restricted on money type(s)?  In other words, can they withdraw their Safe Harbor money?

I haven't had anyone ask for a withdrawal until now, surprisingly.  And I have searched for an answer, and can't find it.  I swear I've read this somewhere, so forgive me if it's been answered. 

Thanks!

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In the situation where the plan does not permit a COVID distribution, but the participant can take one and properly report it, can the participant take it from an account other than the elective deferral account?  

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That a distribution is attributable to a subaccount other than the distributee’s elective-deferral subaccount does not make it one a distributee could not on her tax return treat as a coronavirus-related distribution if it otherwise meets those conditions.

Peter Gulia PC

Fiduciary Guidance Counsel

Philadelphia, Pennsylvania

215-732-1552

Peter@FiduciaryGuidanceCounsel.com

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1 minute ago, Peter Gulia said:

That a distribution is attributable to a subaccount other than the distributee’s elective-deferral subaccount does not make it one a distributee could not on her tax return treat as a coronavirus-related distribution if it otherwise meets those conditions.

Very close to a triple negative.

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