Hurricane relief when you cash of retirement account

Yes, if a hurricane is declared a federally declared disaster, it can qualify for an early IRA distribution under the SECURE 2.0 Act of 2022. This allows individuals to withdraw up to $22,000 from their IRAs without incurring the usual 10% early withdrawal penalty. The distribution must be taken within 180 days of the disaster declaration. Here's a more detailed breakdown: Federally Declared Disasters: The relief applies to federally declared major disasters, not just any hurricane. Qualified Disaster Recovery Distributions: The distributions are called "qualified disaster recovery distributions" and are limited to $22,000 per disaster. 10% Penalty Waiver: If the requirements are met, the 10% early withdrawal penalty is waived, according to the IRS. Tax Implications: The distribution is still taxable, but the tax liability can be spread over three years, or the individual can choose to include the full amount in the year of the distribution. Repayment: The distribution can be repaid within three years, which is treated as a rollover.