tccpa1982
Level 1

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.

0 Cheers