10% additional penalty on IRA withdrawal

Forum|Forum|5 years ago
February 15, 2021
8 replies
35 views

How to waive the additional 10% due on IRA withdrawal because of Covid.

I have used Form 5329 as other, is this correct?

ProSeries Professional

This topic has been closed for replies.

clr600

Level 7

Box should be check on 1099R under Qualified Disaster Distribution Smart Worksheet

but I do not believe it is ready yet

R

rcwood1957Author

Level 2

Thanks!

Just-Lisa-Now-

Intuit Community Champion

If you just want to waive the penalty, you can do it that way. If you want to spread the taxability of the distribution out over 3 years, you need to fill in the disaster section of the 1099R worksheet and wait for the 8915E to be ready.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

G

garman22

Intuit Community Champion

Lisa, would you use 5329 without waiting for 8915-e to be ready? I keep getting conflicting info......I would rather bypass 8915 if I could and use only for 3 year spread.

qbteachmt

Level 15

"I would rather bypass 8915 if I could and use only for 3 year spread."

I think we discovered that the 8915-E has an election you need to consider, so it's not optional:

"Who Must File
File 2020 Form 8915-E if any of the following applies.
• You received a coronavirus-related distribution.
• You received a qualified 2020 disaster distribution other than a coronavirus-related distribution.
• You received a qualified distribution in 2020 for the purchase or construction of a main home in qualified 2020 disaster areas that you repaid, in whole or in part, no earlier than the first day of the disaster and no later than June 25, 2021."

"How Is a Qualified 2020 Disaster Distribution Taxed?
Generally, a qualified 2020 disaster distribution is included in your income in equal amounts over 3 years. However, if you elect, you can include the entire distribution in your income in the year of the distribution."

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