COVID 401 withdrawal in 2020

[Jim-from-Ohio]

I know about the rule where you can spread out over three years a COVID withdrawal but what are the mechanics when taxpayer says they want to pay a withdrawal back over three years..  if the entire amount was picked up in income in 2020 does the return get amended for the amount repaid in 2021, 2022, etc.. I did try and research this but I am still not clear on this.. thank you. 

[qbteachmt · Accepted solution]

Spreading the income over three years is a Disaster provision unless you elect to report it all in the year of distribution.

Repayment is a 3-year concept, clock started on the date of distribution.

Here: https://www.nolo.com/legal-encyclopedia/taxation-and-repayment-of-covid-19-related-retirement-distri...

I like articles written for the consumer. Read "What If I Repay the COVID-Related Distribution to My Retirement Plan?" and see if that helps.

Yes, amendments will be needed.

[Jim-from-Ohio]

thank you.