Access retirement funds in a disaster

“The SECURE 2.0 Act makes it easier for qualified individuals impacted by a federally declared major disaster to access their retirement savings.

Eligibility

A taxpayer may be eligible for relief that provides for expanded access to their retirement funds if their principal residence was in a major disaster area and they sustained an economic loss due to that disaster. An economic loss includes, but is not limited to:

  • Being displaced from the taxpayer’s principal residence.
  • Loss or damage to or destruction of real or personal property from fire, flooding, looting, vandalism, theft, wind, or other cause.
  • Lost income due to temporary or permanent layoff.

Use the tool on FEMA.gov/disaster to find a current list of major disaster declarations.

Types of relief

These types of disaster relief are available to people who qualify:

  • May withdraw up to $22,000 from an IRA or other eligible retirement plan.
    • Amount exempt from the 10% early distribution tax.
    • May repay to a retirement plan or IRA within three years of the distribution.
    • Distribution may be included equally in income over three years.
  • A retirement plan may offer increased loan limits and delay repayments.

More information

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