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jbunt01
Level 1

When will the logic to handle early IRA withdrawals for COVID (qualified disaster) be added? It says, "You'll need to revisit this area. IRS instructions weren't ready".

The full message says, "You'll need to revisit this area.  Unfortunately, IRS instructions related to disaster distributions weren't ready in time for us to include them in this release.  Please revisit this area later."
3 Replies
DanaB27
Employee Tax Expert

When will the logic to handle early IRA withdrawals for COVID (qualified disaster) be added? It says, "You'll need to revisit this area. IRS instructions weren't ready".

 TurboTax will update Form8915-E, that reports the Coronavirus-related relief measures for retirement plan distributions, soon and then you can finish your distribution information.

 

Please see here for additional information and to sign-up for updates.

 

Please follow these steps to enter your 1099-R:

  1. Login to your TurboTax Account 
  2. Click on the Search box on the top and type “1099-R”
  3. Click on “Jump to 1099-R” and you should see the “Your 1099-R Entries” screen
  4. Click "edit" and continue until "Tell us if any of these uncommon situations apply" screen
  5. Select "I took out this money because of a qualified disaster (includes COVID-19)" (TurboTax will walk you through questions once this section is ready)

 

 

Those who qualify as individuals directly impacted by the pandemic will be able to withdraw up to $100k from their retirement accounts without facing the 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.

 

You can choose to have the distribution taxed over 2020, 2021, and 2022 instead of only in 2020. You’ll have three years to pay back the funds you withdrew, without the amount impacting that year’s cap on contributions. If you pay back the amount within that time, you’ll be able to claim a refund on those taxes paid when you file an amended tax return. Please see IRS Coronavirus-related relief for retirement plans and IRAs for more details.

 

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Baggi
New Member

When will the logic to handle early IRA withdrawals for COVID (qualified disaster) be added? It says, "You'll need to revisit this area. IRS instructions weren't ready".

Does anyone have an update on this?

I had read somewhere previously it would be updated so we could finish our taxes on Feb 24th. Still no update.

I've also read that TurboTax will up the price of their products on Feb 28th.

This seems a little convenient that many of us are not able to finish our taxes and they will soon increase the price without letting us finish.

SamS1
Expert Alumni

When will the logic to handle early IRA withdrawals for COVID (qualified disaster) be added? It says, "You'll need to revisit this area. IRS instructions weren't ready".

Its ready.  Form 8915-E: Qualified 2020 Disaster Retirement Plan Distributions and Repayments, which is used for COVID-related early distributions, was efileable starting 2/25.  If you have TurboTax Desktop, make sure you have updated your program.  If you are still having problems, delete the 1099R in forms mode then re-enter.  To update, click on "On Line" in the top menu then "Check for Updates"

 

If you are having problems with TurboTax online, delete the 1099R and re-enter.   After you have logged in and are in your return in TurboTax Online:

  • Go to Search at the top of the screen.
  • Enter Form 1099-R in the search box. 
  • You will see a Jump To function that will take you to the 1099-R input screens. 
  • Delete the 1099R in question by clicking on the trash can next to the form
  • Then add a new 1099R and manually enter your 1099R.

At the financial services screens, click "Change how I enter my form" then "Type it myself"

 

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