The IRS does allow for the taxes owed on the IRA distribution to be spread over a 3 year period with the first being the year the distribution was received.You can enter your 1099-R in TurboTax and account for the spread of taxes in this manner.Sign into TurboTaxClick on Take me to my returnGo to Search at top right and enter 1099-RClick on Jump to 1099-R Click on yes for Did you have any of these types of income in 2017? and then ContinueClick on I'll type it in myselfClick on Form 1099-R and ContinueAdd your 1099-R information as it appears on the form and click ContinueContinue through interview and enter Yes for Was this a Qualified Disaster Distribution? and ContinueContinue with interview until you get to, Do your want to pay tax on the entire 2017...click ContinueFinish up interviewOnce done with the 1099-R entry you can go out to see the the taxes is accounted for properly by:Click on Tax Tools in left columnClick on Tools under Tax ToolsClick on View Tax Summary in Tools CenterClick on Preview my 1040 and scroll down to line 15b, you should see 1/3 of your distribution as taxable

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How do I spread my retirement money over 3 yearsThe income from that I pulled out during Irma?

Forum|Forum|7 years ago
June 4, 2019
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TurboTax Deluxe Online

Best answer by DanO

The IRS does allow for the taxes owed on the IRA distribution to be spread over a 3 year period with the first being the year the distribution was received.

You can enter your 1099-R in TurboTax and account for the spread of taxes in this manner.

Sign into TurboTax
Click on Take me to my return
Go to Search at top right and enter 1099-R
Click on Jump to 1099-R
Click on yes for Did you have any of these types of income in 2017? and then Continue
Click on I'll type it in myself
Click on Form 1099-R and Continue
Add your 1099-R information as it appears on the form and click Continue
Continue through interview and enter Yes for Was this a Qualified Disaster Distribution? and Continue
Continue with interview until you get to, Do your want to pay tax on the entire 2017...click Continue
Finish up interview

Once done with the 1099-R entry you can go out to see the the taxes is accounted for properly by:

Click on Tax Tools in left column
Click on Tools under Tax Tools
Click on View Tax Summary in Tools Center
Click on Preview my 1040 and scroll down to line 15b, you should see 1/3 of your distribution as taxable

D

DanOAnswer

The IRS does allow for the taxes owed on the IRA distribution to be spread over a 3 year period with the first being the year the distribution was received.

You can enter your 1099-R in TurboTax and account for the spread of taxes in this manner.

Sign into TurboTax
Click on Take me to my return
Go to Search at top right and enter 1099-R
Click on Jump to 1099-R
Click on yes for Did you have any of these types of income in 2017? and then Continue
Click on I'll type it in myself
Click on Form 1099-R and Continue
Add your 1099-R information as it appears on the form and click Continue
Continue through interview and enter Yes for Was this a Qualified Disaster Distribution? and Continue
Continue with interview until you get to, Do your want to pay tax on the entire 2017...click Continue
Finish up interview

Once done with the 1099-R entry you can go out to see the the taxes is accounted for properly by:

Click on Tax Tools in left column
Click on Tools under Tax Tools
Click on View Tax Summary in Tools Center
Click on Preview my 1040 and scroll down to line 15b, you should see 1/3 of your distribution as taxable

Z

Zray661

I need to know how to do this for a coronavirus withdraw.

6

67mikehall

What he said works for IRMA. Do not do that for covid withdrawals. Final IRS guidance has not been issued, but the safest route would be to report 1/3 of your income each year for the next 3 years and pay taxes on it that way. See this article for more info:

https://www.barrons.com/articles/how-to-manage-the-taxes-on-a-covid-related-withdrawal-from-your-ira-or-401-k-51608327001

macuser_22

Employee

See below for a link to sign up for an email when the form is ready.

This form is necessary to report COVID related distributions from IRA's and other retirement plans to report the distribution, pay it back over 3 years or spread the tax over 3 years.

A COVID-19 related distribution is reported on a new 8915-E form that is not yet available and there is no estimated release date since the form is still in the draft state at the IRS. There is no telling how long it will take the IRS to make the electronic form available.

The draft paper form 8915-E is here:

https://www.irs.gov/pub/irs-dft/f8915e--dft.pdf
https://www.irs.gov/pub/irs-dft/i8915e--dft.pdf

Also to see if you qualify for a COVID-19 related distribution see:
https://www.irs.gov/newsroom/coronavirus-related-relief-for-retirement-plans-and-iras-questions-and-answers

See this TurboTax FAQ to sign up for an e-mail when the form is ready.
https://ttlc.intuit.com/community/tax-topics/help/why-am-i-getting-getting-a-10-penalty-on-my-1099-r-when-i-withdrew-fund-during-covid-form-8915-e/01/1842324

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**