topic 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 in Retirement tax questions

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 — Wed, 23 Sep 2020 12:22:46 GMT

Re: 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

macuser_22 — Wed, 23 Sep 2020 14:48:05 GMT

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

Re: 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 — Thu, 24 Sep 2020 00:34:01 GMT

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.

Re: 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

macuser_22 — Thu, 24 Sep 2020 00:55:45 GMT

@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.