Covid 19. Hardship Question

[Tom Thompson]

Under the "Cares Act"  I could make a withdrawal without penalty I get laid off or if my spouse has covid 19.  Does the same apply for Hardship if my spouse got laid off or lost her job due to Covid19???

Thanks Tom

[Natalie Kolodij]

No one here answered your question

It's my understanding that YOU have to have endured the hardship. It was recently addressed in a CPE training I attended. The person receiving the hardship is who needs to make the withdraw from their retirement account. 

Additional notes: 

IF you make the withdraw there is no 10% penalty 

The repayment will then be taxably recognized across 3 years (vs all in 1)

IF you re contribute it by the end of year 3 you can amend the earlier 2 years returns where you paid taxes and request  a refund of the tax paid.