Disaster withdrawal from retirement accounts
Up to $22,000 penalty-free
Can You Write Off Disaster Withdrawal From Retirement Accounts?
Short answer: Up to $22,000 for a federally declared disaster skips the 10% penalty, and the income can be spread over 3 years or repaid.
Withdrawals before 59½ are taxed as income plus a 10% penalty unless an exception applies; exceptions waive the penalty, not the income tax.
Records to keep: Keep receipts, statements (1098, 1098-T, 1099, W-2G), and a note of what each cost was for. Compare itemizing to the 2026 standard deduction before you claim.
Disaster withdrawal from retirement accounts
Typical range: Up to $22,000 penalty-free
Individuals / Personal Taxes
Up to $22,000 for a federally declared disaster skips the 10% penalty, and the income can be spread over 3 years or repaid.
Business justification
Up to $22,000 for a federally declared disaster skips the 10% penalty, and the income can be spread over 3 years or repaid. Withdrawals before 59½ are taxed as income plus a 10% penalty unless an exception applies; exceptions waive the penalty, not the income tax.
Category
- Personal Tax Deductions