Level 3

401K Withdrawals and the Cares Act

Forum|Forum|5 years ago
July 7, 2020
2 replies
9 views

Now the questions are coming in. My question - if client takes the full $100 K are the only options report it all at once or evenly over three years or for instance 50% then 25% and then the remaining 25%? Thanks in advance.

This topic has been closed for replies.

Just-Lisa-Now-

Intuit Community Champion

My question is how to you prove to IRS that you needed 100K due to losses from Covid.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

G

GreynewfsAuthor

Level 3

How do you prove you qualify is a good question. So, you were laid off for 4 weeks - were making $600/week. You can withdraw the entire $100,000? Oh well.

Just-Lisa-Now-

Intuit Community Champion

For some reason I dont think its going to work that way...guess we'll see!

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

qbteachmt

Level 15

You want to stay current with IRS info, such as:

"Q6. When do I have to pay taxes on coronavirus-related distributions?

A6. The distributions generally are included in income ratably over a three-year period, starting with the year in which you receive your distribution. For example, if you receive a $9,000 coronavirus-related distribution in 2020, you would report $3,000 in income on your federal income tax return for each of 2020, 2021, and 2022. However, you have the option of including the entire distribution in your income for the year of the distribution."

From:

https://www.irs.gov/newsroom/coronavirus-related-relief-for-retirement-plans-and-iras-questions-and-answers

Don't yell at us; we're volunteers

Sign up

Login with SSO

Let's get you signed in

Login with SSO

Scanning file for viruses.

This file cannot be downloaded