- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Retirement tax questions
If you have 2 withdrawals from the same financial institution, then the coding in box 7 must be different otherwise you would have received only 1 1099R. Review the coding in box 7. After entering the amounts in for the 1099R, you should see a the uncommon situations screen. You must check the box to indicate this is a covid 19 withdrawal. If one of the 1099s has a letter in box 7, there can not be a 1 as the second code as 1 is for non-Roth withdrawals.
The 8915-E will be used for penalty relief from early retirement plan distributions and include the option to spread the distribution income over 3 years. This may be a good option if the distribution is pushing you into a higher marginal tax bracket. You may end up paying less tax if you spread the distribution over the 3 years.