- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Get your taxes done using TurboTax
There is nothing to do on your 2019 return unless in 2018 or earlier you designated the distributions as Qualified Disaster Distributions. Besides eliminating the early withdrawal penalty the distribution would be taxed over 3 years vice the only the year of distribution. If you qualify (see extracts below) then you could go back to the year of distribution and amend to claim the Qualified Disaster status and then each year after include the 1/3 income through the TurboTax interviews.
Here is a link with discussion. Also here are a couple of applicable extracts.
A qualified 2016 disaster distribution is any distribution you received from an eligible retirement plan made on or after January 1, 2016, and before January 1, 2018, if at any time during the calendar year 2016 your main home was located in a major disaster area declared by the President under section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act and you sustained an economic loss by reason of the events giving rise to such Presidential declaration.
Qualified 2016 disaster distributions and qualified 2017 disaster distributions are included in income in equal amounts over three years. However, if you elect, you can include the entire qualified 2016 disaster distribution or the entire qualified 2017 disaster distribution in your income in the year it was received.
**Mark the post that answers your question by clicking on "Mark as Best Answer"