Save time with our cheat sheets, fact sheets, checklists & books!

June 22, 2020

Do you qualify for the Qualified Individual-Coronavirus-Related Distribution? Learn if you do.

Your Guide

Share on print
Print
Share on facebook
Share on twitter
Share on pinterest
Share on linkedin

Qualified Individual-Coronavirus-Related Distribution

Qualified Individual- Coronavirus-Related Distribution

A qualified individual is one who is eligible to take a coronavirus-related distribution, and maybe any of the following:

An individual:

  • who is diagnosed with the virus SARS-CoV-2 or with coronavirus disease 2019 (referred to as COVID-19) by a test approved by the Centers for Disease Control and Prevention (including a test authorized under the Federal Food, Drug, and Cosmetic Act);
  • whose spouse or dependent is diagnosed with COVID-19 by a test approved by the Centers for Disease Control and Prevention (including a test authorized under the Federal Food, Drug, and Cosmetic Act; or
  • who experiences adverse financial consequences as a result of:
    • the individual being quarantined, being furloughed or laid off, or having work hours reduced due to COVID-19;
    • the individual being unable to work due to lack of childcare due to COVID-19; or
    • closing or reducing hours of a business owned or operated by the individual due to COVID-19.

In addition, a qualified individual is an individual who experiences adverse financial consequences as a result of: 

  • the individual having a reduction in pay (or self-employment income) due to COVID-19 or having a job offer rescinded or start date for a job delayed due to COVID-19;
  • the individual’s spouse or a member of the individual’s household (as defined below) being quarantined, being furloughed or laid off, or having work hours reduced due to COVID-19, being unable to work due to lack of childcare due to COVID-19, having a reduction in pay (or self-employment income) due to COVID-19, or having a job offer rescinded or start date for a job delayed due to COVID-19; or
  • closing or reducing hours of a business owned or operated by the individual’s spouse or a member of the individual’s household due to COVID-19.

For purposes of applying these additional factors, a member of the individual’s household is someone who shares the individual’s principal residence

Cite: Section 2202(a)(4)(A)(ii) of the CARES Act; IRS Notice 2020-50

Written By

Denise Appleby

Denise is CEO of Appleby Retirement Consulting Inc., a firm that provides IRA resources for financial/ tax/legal professionals. She has over 20 years of experience in the retirement plans field, which includes training and technical consultation.

Denise writes and publishes educational /marketing tools for advisors; available at http://irapublications.com. Denise co-authored several books on IRAs

Denise is a graduate of The John Marshall Law School, where she obtained a Masters of Jurisprudence in Employee Benefits, and has earned 5 professional retirement designations.
She has appeared on numerous media programs, sharing her insights on retirement tax laws.

Share on facebook
Share on twitter
Share on pinterest
Share on linkedin
Share on print
More

Keep Learning

What is the 5-Year Rule for beneficiaries?

Definition For beneficiaries who inherit retirement accounts,  a common question asked is “What is the 5-Year Rule for beneficiaries?” The beneficiary five-year rule is the

Be among the first to know when

IRA Rules
Change