tccpa1982
Level 1
03-02-2022
03:39 PM
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Creating a new 1099-R for reporting the one-third additional income from the disaster in 2020 may create a 10% penalty for early withdrawals if the client is under 59 1/2 years old. I don't think it will be penalized in 2021 and 2022 for early withdrawals, so sticking it temporarily in "other income" may be a better alternative.