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Level 1
March 22, 2021
Question

can you take any distribution even code 7 normal distribution and spread over 3 years in 2020

  • March 22, 2021
  • 2 replies
  • 10 views

I am getting very confused with the distributions for 2020.  if you take a normal distribution from your retirement can you take it over 3 years.  I understand code 1 and 2 qualify but does code 7.  I have a 63 taxpayer who took 19000 withdraw and in box 7 it is 7 normal distribution

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2 replies

qbteachmt
Level 15
March 22, 2021

You have to read the provisions from the Form 8915-E instructions to see what qualifies as coronavirus disaster distribution.

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BobKamman
Level 15
March 22, 2021

A Code 7 does not disqualify a taxpayer if the other conditions are met.