3799 / What special rules governing retirement plan distributions were implemented for 2018 and 2019 disaster areas?

The 2019 Tax Certainty and Disaster Relief Act extended the rules governing qualified disaster distributions from retirement accounts, discussed below for victims of disasters that occurred in 2018 through 60 days after enactment of the bill (December 20, 2019). The distribution itself must be made within 180 days after enactment of the law to qualify. See Q . See also Q for a discussion of how the CARES Act expanded the retirement plan distribution rules for 2020 in response to the COVID-19 pandemic.

The 2017 tax reform legislation,¹ the 2017 Disaster Tax Relief and Airport and Airway Extension Act,² and the Bipartisan Budget Act of 2018,³ include special tax relief for taxpayers affected by certain presidentially declared disasters that occurred in 2016 and 2017.

A 2016 qualified disaster is a major disaster that was declared in 2016 by the president. A 2016 qualified disaster distribution is any distribution received from an eligible retirement plan in 2016 or 2017 if the recipient’s main home was located in a 2016 qualified disaster area and the recipient sustained an economic loss from the disaster.