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New Member
posted Feb 15, 2021 1:44:09 PM

which version for 401k or IRA distribution

which version needs to be used if I took advantage of the cares act distribution?  Does the software remove the 10% penalty waived by Cares act?  

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3 Replies
Expert Alumni
Feb 15, 2021 4:28:41 PM

As IRS just recently completed its final development of the 2020 version of this form, we do not have the form implemented in the program yet.  I would suggest you to start in Deluxe which supports both the 8915-A and 8915-B for Qualified 2017 Disaster Retirement Plan Distribution and Repayments.  Please click on the following link and sign up for an email notification when it's fixed.  

 

Form 8915-E

 

 

The forms are available if you are going to download from the IRS website.  However, e-filing is different.  Once the form is finalized by the IRS, it has to be coded into the special language the software uses and has to be thoroughly tested for calculations and e-filing acceptability.  IRS then has to approve it for e-file.  It always takes a little longer for a form to become available for e-file in a software program.  I hope this helps you understand the situation.  At this point, the IRS expects to approve the form 8915-E on TurboTax e-file as  02/24/2021.  Thank you for your patience.

 

If you are under age 59 1/2, the distribution from the retirement plans and IRAs is considered as an early withdrawal.  Generally, you will pay both regular tax plus an additional 10% penalty of your entire distribution unless you met certain criteria.  Due to the CARES Act, if your retirement distribution is related the Covid-19, you will not be liable for this additional penalty.  You will still pay the normal taxes like your wages and income.  For more information from the IRS, click here: Covid Relief.  If your distribution is not related to the Covid, you will need to pay the penalty.  

New Member
Mar 9, 2021 1:27:54 PM

Still not available on TurboTax as of 3/9/2021.  When will this get integrated into the TurboTax software?  

Level 15
Mar 9, 2021 1:30:45 PM


@dexsting wrote:

Still not available on TurboTax as of 3/9/2021.  When will this get integrated into the TurboTax software?  


It has been since Feb 26.