401K Cares Act

[redd2309]

Hello, 

When filing on turbotax, I do not see the option where you can choose that this was a Cares act distribution. Any idea where I can find this option? It keeps calculating the extra 10% penalty. The distribution was less the 100K.  Also, does it give you the option to spread out the income over three years? 

[MinhT1 · Accepted solution]

The Coronavirus-related relief measures for retirement plan distributions have to be reported on form 8915-E which has not yet been finalized by the IRS. No date has been given by the IRS for the finalization of this document.

TurboTax will update this section after the IRS releases the final version of form 8915-E and its instructions. Please revisit this section at a later date.

[redd2309]

Thanks for the quick response!

[tkochert]

How is TurboTax going to notify it's customers that the form is available? This is a major change that is affecting a big percentage of the population hit hard by the pandemic. There needs to be a clear indicator and prompts driving us to re-visit the IRA/401K withdrawal area on our software we have paid for.

[PattiF]

The form will presumably be available around the same time as the other  Form 8915s. 

The IRS will be releasing Form 8915-E to use with the 1099-R. Here is more information:

CARES Act and 1099-R Withdrawal.

The software has not been updated yet because the form has not been finalized by the IRS. Once the software has been updated, you will be prompted through the form with instructions on how to enter the information.

The IRS has not provided a release date for the form at this time. Use this link IRS Form Availability to watch for when the 8915-E form will be available in the software once the IRS completes it.