CRDs and Spouses

Submitted by Baird Wealth Planning on Wed, 2020-04-22 21:44

If both husband and wife are impacted by COVID-19, can they each take up to $100k from their respective IRAs for a potential total of $200k?

As a separate question, if a spouse lost a job due to COVID-19, can I (the husband) take a distribution from my qualified plan as a CRD if I wasn’t primarily impacted?



Submitted by Alan - IRA critic on Thu, 2020-04-23 00:40

  • Yes, the 100,000 limit is an individual limit for each spouse that owns a retirement plan, not just IRA accounts.
  • Second question – you could not take a CRD since you are not the one being laid off, however if you cannot work due to lack of child care and there is a good reason your spouse cannot provide the care, you might still qualify. This financial impact qualification is one that the IRS is going to have to further clarify. Some experts expect that to broaden the qualifications for CRDs as time goes on. 

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