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10% early withdrawal relief for covid related distribution

Level 1

Taxpayer (under age 59.5) received a 1099R for a qualified plan withdrawal with  distribution code 1 that qualifies as a covid related distribution. What form do I use so the distribution is not subject to the additional 10% tax? Form 5329?

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Level 7

Go to Form 5329, right after Line 1 there is a list of things that will waive the 10% penalty, scroll down and Look for Distributions Not subject to additional Tax, find Letter L, write the amount of the distribution and you will see that the software will write code 12 on Line 2 and waive the penaltly. There will be another way to do it once the software updates the 1099R on February 18. Hope it helps. If you look at the instructions of Form 5329, in the IRS website, Code 12 includes the Coronavirus Related Distribtuions Waiver. Thank you. 

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Level 10

Yes

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Level 7

Go to Form 5329, right after Line 1 there is a list of things that will waive the 10% penalty, scroll down and Look for Distributions Not subject to additional Tax, find Letter L, write the amount of the distribution and you will see that the software will write code 12 on Line 2 and waive the penaltly. There will be another way to do it once the software updates the 1099R on February 18. Hope it helps. If you look at the instructions of Form 5329, in the IRS website, Code 12 includes the Coronavirus Related Distribtuions Waiver. Thank you. 

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Level 1

Thanks. Good job.  "Joe Fox"

Level 2

I have same situation.  In addition to Form 5329, do you also have to complete Form 8915-E?

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Level 15

Form 5329 is for the penalty, if it applies or needs you to select "other" for the code for waiver.

Form 8915-E is for the taxable amount being taxed and reported as a Disaster, over three years or optionally all in the first year.

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