Greetings Community,
I'm helping clients who have a 2022 1099-R form showing a 194k w/d with a Box 7 Distribution Code of 1 - IRA box checked. The clients believe that because of Covid there was an exemption for the penalty incurred. They claim that the representative told them there wouldn't be a penalty when they called to make the withdrawal due to said exemption. However, I haven't been able to find anything for 2022 Covid related that would apply. Just in case I am missing anything, I thought I would ask the group.
Thank you!
Dawn
Best Answer Click here
"Q4. What is a coronavirus-related distribution?
A4. A coronavirus-related distribution is a distribution that is made from an eligible retirement plan to a qualified individual from January 1, 2020, to December 30, 2020, up to an aggregate limit of $100,000 from all plans and IRAs."
Look here, to see if anything applies:
There were not any Covid-related exceptions for retirement withdrawals in 2022. The client and/or their retirement representative may have been thinking of the special rules during part of 2020.
Any chance they were in a Federally declared disaster area that may have qualified for the special rule for retirement withdrawals?
Hello,
Thank you for responding. No, not disaster zone. I think they were just confused and now have a large amount owed to the IRS. But I would have been happy to be very wrong about that!
"Q4. What is a coronavirus-related distribution?
A4. A coronavirus-related distribution is a distribution that is made from an eligible retirement plan to a qualified individual from January 1, 2020, to December 30, 2020, up to an aggregate limit of $100,000 from all plans and IRAs."
Look here, to see if anything applies:
You have clicked a link to a site outside of the Intuit Accountants Community. By clicking "Continue", you will leave the community and be taken to that site instead.