IRA withdrawals - can the amount be spread out in 3 years just like 401K distributions?

Forum|Forum|5 years ago
May 17, 2021
3 replies
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Can IRA withdrawals be spread out in 3 years just like 401K distributions?

I have a client who withdrew $45K from his IRA. When I select the COVID-19 option, it calculates $13K to be reported in 2020. I thought the program would calculate $15K for 2020, 2021 and 2022. Are IRA and 401K distributions treated differently for the 3 year spread?

ProSeries Basic

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Best answer by TaxGuyBill

Yes, if the person is a qualifying person, IRAs can be spread out over 3 years for a Covid distribution.

Is there any Basis in the IRA (also look at Form 8606)? Does box 2 show the full $45,000 as taxable? Look through Form 8915-E to see what is happening.

T

TaxGuyBillAnswer

Level 15

Yes, if the person is a qualifying person, IRAs can be spread out over 3 years for a Covid distribution.

Is there any Basis in the IRA (also look at Form 8606)? Does box 2 show the full $45,000 as taxable? Look through Form 8915-E to see what is happening.