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June 5, 2024
Question

What would be considered a disaster in 2019-2022? Would the extra money we got be considered?

  • June 5, 2024
  • 3 replies
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3 replies

Employee
June 5, 2024

What question are you trying to answer?   If it is asking you about taking out money from a retirement account for a disaster, it is asking if you took money out of a retirement  account like an IRA or 401k.   It has nothing whatsoever to do with stimulus checks.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
June 5, 2024

you can use this search tool to determine federally declared disasters.....

 

https://www.fema.gov/disaster/declarations

 

 

Employee
June 5, 2024

COVID was not a disaster for this question.

 

If you withdraw money from a qualified retirement account to pay expenses related to certain qualifying disasters, that withdrawal is subject to special rules for either repaying the retirement account or paying tax on the funds.  Federally declared disasters typically include major storms like hurricanes and tornado outbreaks, wildfires, earthquakes, and so on.  Withdrawals due to expenses of COVID are not disasters for this rule, COVID withdrawals are covered under a different set of rules, and the law specifically excludes COVID from the "normal" disaster rules.