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.

The IRS is here to help

For questions and assistance, call the IRS disaster hotline at 866-562-5227.

More information

• Disaster relief FAQs: Retirement plans and IRAs under the SECURE 2.0 Act of 2022
• Tax-related disaster relief