Corona-related distribution and 10% penalty

[Jtax LLC]

Does anyone know if the Corona-related retirement distribution that the client spread over 3 years is subject to the 10% early withdrawal penalty on their 2021 return?

[Just-Lisa-Now-]

No early penalty. Once the 8915F that's needed for reporting this portion is ready, you'll see that no penalty gets calculated, same as 2020.

[jeffmcpa2010]

And we have been led to believe that the 8915F will appear sometime in mid to late March.

[qbteachmt]

There is no penalty, because the withdrawal was in the prior tax year. All they did is opt to delay reporting income for tax purposes. They could have paid all the tax in 2020, or the remainder in 2021, and not carry any more of it forward. It's a delay, not a penalty.