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

rob-harris3 · ‎September 23, 2020

macuser_22 · ‎September 23, 2020

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.**

fanfare · ‎September 23, 2020

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.

macuser_22 · ‎September 23, 2020

@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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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