Question

1099 R normal distribution (Code 7). Cares Act distribution over 3 years

Forum|Forum|5 years ago
April 1, 2021
1 reply
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I received a 1099R for a withdrawal from a 403b plan that I still participate in. I took the withdrawal in 2020 and was slightly older than 59 1/2. Box 7 on 1099R has code 7 which signifies normal distribution. I do qualify for Cares Act as I was not working at my job for 4 months and lost wages. I did not collect unemployment (not eligible) because I have a decent state pension and other part time job that I work at. I would like to take the distribution that I received and spread it over 3 years as per the Cares Act. It would mean the difference of me paying the IRS or getting a refund this year. Is it a problem that the the 1099R does not indicate Covid withdrawal? The Turbo Tax program asks me questions and says that I qualify....

D

DavidD66

It is not a problem that your 1099-R does not indicate that your distribution was COVID-19 related - it shouldn't. That is an election you make on your tax return, based on your personal situation. It is not something reported on a Form 1099-R.

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