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January 20, 2023

Domestic abuse distribution


Domestic abuse distribution

A distribution taken from an employer plan for domestic abuse purposes

A domestic abuse distribution is one that is made to domestic abuse victim, during the 1-year period beginning on any date on which the individual is a victim of domestic abuse by a spouse or domestic partner. An employee may self-certify that they qualify for a domestic abuse distribution.

A domestic abuse distribution for a participant is capped at the lesser of (a)$10,000 or (b)50% of the participant’s vested account balance. The $10,000 limit is adjusted for inflation, inflation as of 2025.

Domestic abuse distributions may be made from an applicable retirement plan.

Domestic abuse defined

Domestic abuse means physical, psychological, sexual, emotional, or economic abuse, including efforts to control, isolate, humiliate, or intimidate the victim, or to undermine the victim’s ability to reason independently, including by means of abuse of the victim’s child or another family member living in the household.

No 10% early distribution penalty

The 10% early distribution penalty is waived for domestic abuse distributions

IRC § 72(t)(2))(K)

Withholding and repayment rules

The notice requirements and the 20% withholding that applies to rollover-eligible distributions do not apply to domestic abuse distribution, and the amount or any portion of it may be repaid within three years, to an applicable eligible retirement plan. An applicable eligible retirement means an eligible retirement plan other than a defined benefit plan.

The domestic abuse distribution provision was introduced under SECURE Act 2.0, and is effective for distributions made after 2023





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