CRD /hardship withdrawal pre age 59 1/2
Normally, under IRS rules, inservice
company plan withdrawals
are available only to participants
over age 59½ or those who incur
a hardship expense. Under the
CARES Act, employees who are
qualified individuals may take
in-service CRDs at any age and
without incurring a standard IRS
hardship — as long as the plan
allows them.
Can this type of withdrawal be taken as a rollover to an IRA?
Permalink Submitted by Alan - IRA critic on Thu, 2020-04-30 16:09
Not as a direct rollover, but repayment of a CRD can be done within 3 years of the CRD distribution. Whether that repayment could be done to a Roth IRA is not clear. Withholding on the CRD is done using a default rate of 10%, but that can be waived by filing a W-4P. Taxes are due either in the year of distribution or ratably over 3 years with adjustments and possibly amended returns due to repayments.