The CARES Act waives the early withdrawl penalty (10%) for any coronavirus related distributions from any eligible retirement plan between January 1st, 2020 and December 31st, 2020.  The CARES Act also waives the 20% mandatory federal withholding for qualified plan distribution.  This waiver only applies to the early withdrawl penalty, but does not waive the tax. Eligible retirement plans are defined contribution plans such as 401Ks, as well as 403(b), 457 and IRAS. To clarify who is eligible for the waiver, it is for individuals diagnosed with Covid-19 or a spouse, or dependent who has been diagnosed with Covid-19.  Additionally, the waiver aplies to any taxpayer who suffers adverse financial consequences due to quarantine, layoff or reduced hours, inabiltiy to work due to lack of childcare or business closure due to the virus. Also, unless the taxpayer elects not to, they can spread any amount required to be included in gross income for the year to spread it over the 3 taxable year period beginning with this year.