A landmark federal retirement law allows for special purpose distributions of up to $22,000 of qualified disaster recovery distributions from eligible 401(k), 403(b), and IRA plans, the IRS said in a new fact sheet.
“The FAQs deal with disaster distributions, that there’s new special rules for qualified disaster distributions, there are different times where distributions are permitted,” said Kyle Brown, deputy benefits tax counsel for the Treasury Department. Brown spoke at the ABA’s May Tax Meeting in Washington Friday as the new fact sheet was published.
Distributions are exempt from the usual 10% additional tax for early retirement plan ...
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