Question

I have a question on what amount limit qualifies for a COVID-19 distribution, all or part?

Forum|Forum|5 years ago
February 27, 2021
1 reply
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I'm a little confused with this question and need help clarifying the correct way to answer it.

TurboTax Deluxe Online

Employee

You can treat any part of or all of the distribution as a covid distribution, up to 100K. If you withdrew 120K, only 100K can be used. But if you withdrew 20K, you can apply the relief to any portion of the withdrawal or all 20K. If you don't use it all and you are under 59.5, you will owe the 10% penalty on the portion you do not treat as covid-related.

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