CRDs
Do residents of TX and OK qualify for CRD like treatment of distributions based on the extension under the Appropriations bill for non COVID disasters?
Do residents of TX and OK qualify for CRD like treatment of distributions based on the extension under the Appropriations bill for non COVID disasters?
Permalink Submitted by Alan - IRA critic on Tue, 2021-03-02 18:32
Yes, I think the 60 day deadline for a declared federal disaster under this bill expired on 2/25. If eligible the distributions would be treated exactly like CRDs.
Permalink Submitted by Sten Lindquist on Tue, 2021-03-02 21:47
That was my initial understanding but the statue is very confusing and after saying the disaster has to be declared within 60 days after the enactment date says “if the incident period of the disaster with respect to which such declaration is made begins on or after December 28, 2019 and on or before the date of the enactment of this Act.” This seems to mean that it would only apply to any disaster that occurred between December 28, 2019 and December 27, 2020.(A) IN GENERAL.—The term ‘‘qualified disaster area’’means any area with respect to which a major disasterwas declared, during the period beginning on January 1,2020, and ending on the date which is 60 days after thedate of the enactment of this Act, by the President undersection 401 of the Robert T. Stafford Disaster Relief andEmergency Assistance Act if the incident period of thedisaster with respect to which such declaration is madebegins on or after December 28, 2019, and on or beforethe date of the enactment of this Act.
Permalink Submitted by Alan - IRA critic on Wed, 2021-03-03 00:42
I agree, the qualifying “incident” (disaster) must have occurred prior to 12/27. Since the recent major freeze occurred later, there will have to be additional legislation to include 2021 disasters. I think there is little doubt that such legislation will occur given the amount of damage in that area. Nonetheless, I would not take such a distribution at this time as a taxpayer unless they choose to regardless of pending legislation.