Form 8915E-Disaster Distribution Repayments

Forum|Forum|4 years ago
April 25, 2022
2 replies
17 views

If a client received a disaster retirement plan distribution in 2020 and made a 1/3 repayment on their 2020

return, do they have to make a repayment on their 2021 return or can they make two repayments on their

2022 return?

ProSeries Basic

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Best answer by dkh

It is NOT making a repayment. It is reporting 1/3 as a taxable distribution. No they cannot report $0 on 2021 and 2/3 on 2022. It 1/3 report 2020,2021,2022.

dkhAnswer

Level 15

It is NOT making a repayment. It is reporting 1/3 as a taxable distribution. No they cannot report $0 on 2021 and 2/3 on 2022. It 1/3 report 2020,2021,2022.

qbteachmt

Level 15

Start with the fact that they are not reporting it all as income in the year of distribution, so the requirement would be to report it over three years as 1/3 of the income per year.

Next, if you repay in 2021, you can handle it a couple of ways. If they are repaying, then they would evaluate the repayment against the reportable amount. It is considered a rollover, so that can mean amending 2020, netting in the year of the repayment, or even having a repayment amount to carry forward. It all depends on the circumstances.

"If a client received a disaster retirement plan distribution in 2020 and made a 1/3 repayment on their 2020 return"

You don't have to repay at all and you can repay as little as you want to repay. You even can repay all of it in year 3. You have to report it as income, though, if it is not repaid. You cannot skip year 2 and you cannot report the remaining 2/3 all in year 2.

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