Distributions for Adoptions or Births

Q. Can distributions be made from a 403(b) to cover expenses related to an adoption or the birth of a child?

A. For distributions made after Dec. 31, 2019, a qualified birth or adoption distribution may be made from a 403(b) plan and is not subject to the 10% additional income tax. A qualified birth or adoption distribution is a distribution made from a 403(b) plan (or other applicable eligible retirement plan) that is no greater than $5,000 and is made during the 1-year period beginning on the date on which the child is born or legally adopted.