QUALIFIED BIRTH OR ADOPTION DISTRIBUTION
01.Core Concepts
• Up to an aggregate amount of $5,000 (per taxpayer per child) • Distribution can be made within 1 year after the birth or legal adoption • Eligible Adoptee: any individual (other than a child of the taxpayer’s spouse) who has not attained age 18 or is physically or mentally incapable of self-support. • Distribution can be repaid by the third year after distribution • Applies to distributions made after 12/21/19