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New Member
posted Mar 20, 2021 7:28:31 AM

Can you average a one time distribution from a 1099-r?

can you average a distribution over multiple years?

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1 Replies
Level 15
Mar 20, 2021 7:33:08 AM

If it's a disaster distribution or a coronavirus-related distribution, you can choose to spread the income in equal parts over 3 years.  Otherwise, it's all includible on your 2020 tax return.

 

(I'm assuming that this was not a lump-sum distribution paid from a qualified retirement plan and the employee was born prior to January 2, 1936, potentially qualifying for special tax treatment.)