topic Re: 1099r in Get your taxes done using TurboTax

1099r

rjw0831 — Sun, 16 May 2021 12:43:12 GMT

I received a 1099 R at the end of January 2020 (pre-covid). I was unemployed at this time as I was let go from my prior employment. Does being laid off qualify as for 2020 disaster relief?

Thank you in advance.

Re: 1099r

RayW7 — Sun, 16 May 2021 12:57:06 GMT

When the COVID pandemic hit and unemployment soared in 2020, Congress passed the CARES Act, which gave special tax treatment for eligible withdrawals from retirement accounts. The usual 10% penalty on early withdrawals before age 59-1/2 is waived.

-follow this link for additional information-

2021 Stimulus: Tax Relief for This Year's Taxes - TurboTax ...

-regarding unemployment, follow this link-

Unemployment Stimulus: Am I Eligible for the New ...

Re: 1099r

rjw0831 — Sun, 16 May 2021 13:13:06 GMT

Thank you RayW7 for the prompt response. I appreciate it. My distribution occurred prior to Covid. Does this matter?

Re: 1099r

LenaH — Sun, 16 May 2021 14:53:43 GMT

Yes. The exclusion only applies if you had to take money from your retirement plan if you are a qualified individual impacted by coronavirus.

You are a qualified individual if:

You, your spouse, or dependent are diagnosed with COVID-19
You experience adverse financial consequences as a result of being quarantined, furloughed, or laid off
You had hours reduced due to coronavirus
You are unable to work due to your child care closing or reducing hours.

Since you took the distribution prior to Covid-19, then you would not qualify.

@rjw0831

Re: 1099r

rjw0831 — Mon, 17 May 2021 02:12:40 GMT

Thank you Lena