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How do you input the Covid exception to the early withdrawal of retirement funds? And how do you apply the tax due to the three year period?

Level 1
I have a 1099-R that qualifies for the CARES Act exception to penalty and allows for tax to be paid over the three year period.  However, I dont see the exception in the input nor an allocation for the tax to spread out over the three years.
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3 Replies 3
Level 15

You need a combination of form 5329 (code - other) and form 8915E.  The bad news is, the 8915E isn't going to be ready until 2/25.

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Level 3

On in the input screen for the 1099-R there is a section for form 8915.  You need to enter the distribution amount that will be spread over 3 years in the box for "qualified disaster recovery distributions included in gross distribution"  The 1099-R my client had was coded as an earlier distribution with exception so I did not have to address the penalty amount.  

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Level 15



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