COVID-19 Relief on early -K early distribution penalty

Forum|Forum|5 years ago
March 12, 2021
14 replies
70 views

Hello All,

Individual who is years old who is affected by COVID-19 can he withdraw full Amount of his retirement accounts 401(k) for loosing his job without a 10% penalty, and if so do we use form 5329 and what linbe if so.

I did find online that the 10% penalty will be waived for distributions made in % 2020 if it is covid-19 related.

Thank you for your response.

Mustapha

ProSeries Professional

This topic has been closed for replies.

Best answer by qbteachmt

Did you enter the 1099-R, and mark that this is qualified as covid distribution?

sjrcpa

Level 15

It was for 2020, up to $100,000.

The more I know the more I don’t know.

Just-Lisa-Now-

Intuit Community Champion

You may want to brush up on your CEs as to how this all works.

Form 8915E does the penalty waiver and 3 year spread of taxability (or to opt out of the 3 years spread)

There was a 100k limit for distributions.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

M

Mustapha RatibAuthor

Level 4

Thanks Lisa for your response, but unfortunately, could NOT find the Form 8915-E, although I do see 8915-A,B,C,and D all Disaster retirement plans distribution.

I know than under CARES Act early withdrawls due to COVID / Hardship will noe be subject to 10% I just don't know how to apply it into Proseries. all I can think of is the 5923 which is for other scenarios.

Regards

Mustapha

qbteachmtAnswer

Level 15

Did you enter the 1099-R, and mark that this is qualified as covid distribution?

Don't yell at us; we're volunteers

qbteachmt

Level 15

You need to read the regular provisions.

For instance, 55 and lost a job; substantially equal periodic payments; rollover options.

Don't yell at us; we're volunteers

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