USA Coronavirus-related distribution

[mparacha]

My client made a Coronavirus-related distribution is a distribution that is made from an eligible retirement plan to a qualified individual from January 1, 2020, to December 30, 2020, up to an aggregate limit of $100,000 from all plans and IRAs. I am wondering if there is specific distribution code or form if:

1. He elect to ratably recognizes the distribution over three year OR
2. Recognizes the whole amount in 2020.

Additionally, I think it would make sense to payback to the distribution if the cash is not need at this and file and amended

 

[BIG E]

Form 8915E

 

[mparacha]

Form 8915E

Thank you very much. So I will not use the 1099 entry form with the distribution code. I will just use the form.

 

[BIG E]

No - you need to enter the 1099 form information before you prepare Form 8915E.
8915E is a summary form that provides tracking of distributions and amount to
spread over the 3 tax year period.
If you don't want to spread it out but pay it all in one year - you need to complete the
back of 8915E to select the opt-out.
8915E is programmed to default to the 3 year spread, unless you opt-out.

 

[mparacha]

Thank you