No. According to the IRS FAQs Coronavirus Related Relief for Retirement Plans for these withdrawals can be fully reported in 2020 or you must spread them out over three years.
You can amend your 2020 tax return to include the full distribution if you choose, however there could be penalty and interest for underpayment since any balance due would be paid now, which is late.
- Q6. When do I have to pay taxes on coronavirus-related distributions?
A6. The distributions generally are included in income ratably over a three-year period, starting with the year in which you receive your distribution. For example, if you receive a $9,000 coronavirus-related distribution in 2020, you would report $3,000 in income on your federal income tax return for each of 2020, 2021, and 2022. However, you have the option of including the entire distribution in your income for the year of the distribution.
- Q13. How do qualified individuals report coronavirus-related distributions?
A13. If you are a qualified individual, you may designate any eligible distribution as a coronavirus-related distribution as long as the total amount that you designate as coronavirus-related distributions is not more than $100,000. As noted earlier, a qualified individual may treat a distribution that meets the requirements to be a coronavirus-related distribution as such a distribution, regardless of whether the eligible retirement plan treats the distribution as a coronavirus-related distribution. A coronavirus-related distribution should be reported on your individual federal income tax return for 2020. You must include the taxable portion of the distribution in income ratably over the 3-year period – 2020, 2021, and 2022 – unless you elect to include the entire amount in income in 2020. See generally section 4 of Notice 2005-92.
- IRS Publication 590B: The information in this publication shows the exact same rule. If you did not include it in income fully (100%) then you must report one third each year for 2020, 2021, 2022. (Found under Taxation of Qualified Disaster Distributions).
@tahervaziri
[Edited: 03/31/2022 | 11:53a PST]
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
