Qualified Disaster Distribution

[2084]

My Client - an unemployed bartender took a qualified disaster distribution of $50,000.00. from his job related retirement account over the period of his unemployment.  Most was used for paying expenses however he paid off his credit card accounts in the amount of $10,000. so that he would not have to make his monthly payments.  Most of the $10,000.00 debt was created in prior years. Would all or part of that $10,000 be considered as qualified? Thanks!

[2084]

How do I enter a conversation?

[Just-Lisa-Now-]

Doesnt matter what he used it for, use the Disaster boxes on the 1099R worksheet to utilize the penalty exclusion and 3 year taxability spread if desired.

[qbteachmt]

He could do anything he wanted with it; it's his money.

Here is your Help article:

https://proconnect.intuit.com/community/individual/help/proseries-form-1099-r-faq-s/00/4853

Use his 1099-R to fill in the info.