---
title: "Access retirement funds in a disaster"
date: 2025-01-28
author: "Jennifer Parker"
featured_image: "https://beachfleischman.com/wp-content/uploads/2025/01/2025-0116-Access-retirement-funds-in-a-disaster_blog.avif"
categories:
  - name: "Tax Bites"
    url: "/category/tax-bites.md"
tags:
  - name: "disaster relief"
    url: "/tag/disaster-relief.md"
  - name: "retirement"
    url: "/tag/retirement.md"
  - name: "SECURE 2.0 Act"
    url: "/tag/secure-2-0-act.md"
---

# Access retirement funds in a disaster

In the wake of a federally declared disaster, the [SECURE 2.0 Act](https://beachfleischman.com/tag/secure-2-0-act/) offers significant relief for individuals and businesses looking to access retirement funds without penalties. This relief is available to those who have suffered economic losses due to displacement, property damage, or loss of income. With this provision, you can withdraw up to $22,000 from retirement accounts like IRAs, avoiding the typical 10% early withdrawal penalty. Additionally, these withdrawals can be repaid within three years, and the tax impact can be spread out over a three-year period, making it easier to recover financially.

While the SECURE 2.0 Act provides helpful flexibility, weighing the long-term consequences of accessing retirement funds is important. Although the penalty is waived, distributions remain taxable, and taking funds out of your retirement account could impact your future savings. For those affected by a disaster, it’s wise to consult a tax professional to understand your options and ensure you make the best financial decisions.

For more information about the IRS guidelines, please visit: <https://www.irs.gov/newsroom/access-retirement-funds-in-a-disaster>