cheersmate Posted July 7, 2020 Posted July 7, 2020 A Participant in a 401k Plan received a Hardship Distribution in 2020. He is now a "Qualified Individual" under the expanded definition under CARES Act (the spouse of...). He intends to make the election to pay the taxes over the next 3 years as permitted as a Qualified Individual under CARES, exemption from 10% penalty. QUESTION: is he permitted to return the distribution the Plan or an IRA if he is able to do so within 3 Years of the distribution date? Thank you
C. B. Zeller Posted July 7, 2020 Posted July 7, 2020 Yes. Luke Bailey 1 Free advice is worth what you paid for it. Do not rely on the information provided in this post for any purpose, including (but not limited to): tax planning, compliance with ERISA or the IRC, investing or other forms of fortune-telling, bird identification, relationship advice, or spiritual guidance. Corey B. Zeller, MSEA, CPC, QPA, QKA Preferred Pension Planning Corp.corey@pppc.co
cheersmate Posted July 7, 2020 Author Posted July 7, 2020 1 hour ago, C. B. Zeller said: Yes. Thank you. I thought so but because it was a Hardship taken, not a CARES Act distribution, I wanted to be certain.
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