Will the 2020 TurboTax Software also have the option to spread the income taxes for an eligible 401K withdrawal over 3 years as allowed by the CARES Act guidelines?
Yes. The TurboTax software will include all the instructions and forms related to the CARES act for a retirement plan withdrawal after the IRS finalizes and approves all the necessary forms and instructions.
Yes. Turbotax will have every form and instruction that is allowed and required by the IRS. However, that section of the program isn't ready yet because the IRS isn't ready either.
I converted an IRA to Roth and now i dont have the funds to pay the tax bill in April, will I be able to claim hardship withdrawal and spread the tax bill over the next three years?
When will that section of the program be ready?
The IRS has not finalized the Form 8915-E for CARES act withdrawals from retirement plans. The IRS has not communicated when the form will be available for including in the 2020 federal tax return. Once the form and instructions have been finalized it will be included in the TurboTax program.
Estimates are the Form 8915-E will be available sometime in February.