401(K) early withdrawal exemption for hardship under Covid 19 situation

One of the relief measures for Covid-19 is the exemption of the early withdrawal penalty when you are younger than 59 1/2.

Please read this IRS document for more information.

To take advantage of this exemption, please follow these steps:

1. Enter your form 1099-R normally.
2. After entering your form 1099-R, click Continue until you reach the screen Do any of these situations apply to you?. 
3. Check the box which says I took out this money because of a qualified disaster (includes COVID-19).

1. Click on the radio button Yes this was withdrawn due to COVID-19 and click Continue.

1. Follow the interview until you arrive at the screen Was this a withdrawal due to COVID-19 or a Qualified Disaster Distribution?

1. Click on the radio button Yes this was withdrawn due to COVID-19 and click Continue
2. Follow the interview until you arrive at the screen Let's check if you're exempt from additional taxes
3. Check the appropriate radio buttons and your withdrawal will be exempted from the 10% penalty.