Will taking 2 w/draws from my 401k totalling $60k ...
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New Member

Will taking 2 w/draws from my 401k totalling $60k under covid reasons cause any issues or red flags or b an issue to b audited or will i only need to just pay taxes on it

 
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Level 15

Will taking 2 w/draws from my 401k totalling $60k under covid reasons cause any issues or red flags or b an issue to b audited or will i only need to just pay taxes on it

It should not cause any problems if it qualifies as a COVID related distribution in one of the ways specified in the tax law.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
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Level 15

Will taking 2 w/draws from my 401k totalling $60k under covid reasons cause any issues or red flags or b an issue to b audited or will i only need to just pay taxes on it

There will probably be a check box somewhere (8606 ?) to claim "covid related " tax treatment. It's not clear at all how much auditing of "covid related" distributions will happen.

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Level 15

Will taking 2 w/draws from my 401k totalling $60k under covid reasons cause any issues or red flags or b an issue to b audited or will i only need to just pay taxes on it


@fanfare wrote:

There will probably be a check box somewhere (8606 ?) to claim "covid related " tax treatment. It's not clear at all how much auditing of "covid related" distributions will happen.


I believe it will be reported on a new 8915-E form for 2020 that will be part of the 1099-R interview.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
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