A provision of the SECURE Act allows penalty-free withdrawals of up to $5,000 within a year following the birth or legal adoption of a child on or after January 1, 2020.
An eligible adoptee is any individual (other than a child of your spouse) who is under age 18 or is physically or mentally incapable of self-support.
The distribution must be made within one year following the birth or legal adoption of a child and can't exceed $5,000 across all of your retirement plans.
A qualified birth or adoption withdrawal may be repaid to a qualifying retirement plan as a rollover contribution.
Withdrawals made from a 401(k) may only be made from vested account balances attributable from employee elective deferrals (but not earnings on those elective deferrals).
Download the Qualified Birth or Adoption Distribution Form at myURS to request a distribution under this provision.