A qualified disaster distribution is a distribution, up to $100,000, taken by a plan participant whose main home was located in a federally declared disaster area. This special relief was enacted by congress for certain federally declared disaster victims for tax year 2016 and 2017.
The following federally declared disasters qualify for this additional 10% tax exemption:
- Harvey, after August 22, 2017, and before January 1, 2019;
- Irma, after September 3, 2017, and before January 1, 2019;
- Maria, after September 15, 2017, and before January 1, 2019;
- The 2016 disasters, in either 2016 or 2017; and
- California wildfires, after October 7, 2017, and before January 1, 2019.
For information on how to report your distribution, review our knowledgebase article.