Qualified 2020 Disaster Retirement Plan Distribution Spread over 2 Years?

[jppsmitty]

I took a Qualified 2020 Disaster Retirement Plan Distribution and elected to spread over 3 years. Can I now claim the remaining 2/3 in 2021?

[DanaB27]

Yes, please follow these steps to report any further tax to be paid or any repayment:

1. Login to your TurboTax Account 
2. Click on the "Search" on the top and type “1099-R”  
3. Click on “Jump to 1099-R” 
4. If you do not have any 2021 1099-R answer "No" to "Did you get a 1099-R in 2021?" (If you have any other 1099-R then enter all 1099-R and after entering your last 1099-R click "Continue" on the “Review your 1099-R info​​​​​​​” screen)
5. Answer "Yes" to the "Have you ever taken a disaster distribution before 2021?" screen
6. Follow the instructions on the screen

Please verify that you checked the box next to "If this was a Coronavirus-related distribution reported in 2020 check here". Also, make sure you enter the amount from Form 8915-E, line 9 twice (if it was not from an IRA) or enter the amount from Form 8915-E, line 17 twice (if it was from an IRA). This amount should be 1/3 of your 2020 COVID distribution.

[jppsmitty]

Hi @DanaB27,

Thank you for your reply to my question. Please allow me to expand on my situation.

I did make a qualified 2020 Disaster Retirement Plan Distribution in 2020 (due to pandemic) and elected to spread it out over 3 years and 1/3 of it was subject to tax in 2020. 

Now in 2021 I have a considerable amount of tax write-offs to claim so I was wondering if instead of filing my 2021 tax return with the normal 1/3 of the distribution being subject to tax, if I can claim the remaining 2/3rds in 2021 (instead of 1/3 in 2021 and the final1/3 in 2022)?

Thank you!

[DanaB27 · Accepted solution]

No, if you selected to spread the distribution over 3 years then you will have to claim the income in 2020, 2021, and 2022 evenly. You cannot allocate 2/3rds to 2021.

@jppsmitty