Yes, if you were directly impacted by the pandemic then you have the option split the $12,000 distribution over 3 years (for $4,000 per year) and will not have to a 10% early withdrawal penalty.
You qualify if:
- You, your spouse, or your dependent are diagnosed with COVID-19
- You experience adverse financial consequences as a result of being quarantined, furloughed, or laid off or having work hours reduced because of COVID-19
- You’re unable to work due to child care closure or hour reduction because of Covid-19
- You experience adverse financial consequences as a result of closing or reducing hours of a business that you own or operate due to SARS-CoV-2 or COVID-19.
No, your Form 1099-R is correct, please follow these steps to enter your 1099-R and trigger Form 8915-E to report the COVID distribution:
- Login to your TurboTax Account
- Click on the Search box on the top and type “1099-R”
- Click on “Jump to 1099-R” and enter your 1099-R (if you started this before you should see the “Your 1099-R Entries” screen and will click "edit")
- Continue until "Tell us if any of these uncommon situations apply" screen
- Select "I took out this money because of a qualified disaster (includes COVID-19)"
- Answer all follow up questions carefully.
Please see IRS Coronavirus-related relief for retirement plans and IRAs for more details.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
