Taxpayer has a 1099R with a distribution code of L (loan treated as a deemed distribution). However the program did not defer 2/3 of the gross distribution. Research does not back this up. Anyone know anything differently.
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I dont believe a Loan distribution qualifies for the 3 year spread. But I am not 100% sure. Have you researched this?
Sounds like a prior year distribution that they defaulted on...not sure thats considered a Covid distribution.
Q8. What plan loan relief is provided under section 2202 of the CARES Act?
A8. Section 2202 of the CARES Act permits an additional year for repayment of loans from eligible retirement plans (not including IRAs) and relaxes limits on loans.
Form 8915-E instructions:
"Distributions that are not qualified 2020 disaster distributions...
The following distributions are not qualified 2020 disaster distributions even if the disaster is listed in Table 1
Loans that are treated as deemed distributions pursuant to section 72(p)."
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