I have a t/p that is retired from the military who was receiving combat related special dispensation {crdp}. His retirement rate was recalculated and he is now considered 100% disabled. He received a lump sum distribution in the amount of $25,023.29 of which $8,000 was withheld in federal withholdings. This sum was for period from Jan 2004 - Oct 2008. This is from the Department of Defense, not the V.A.
He received a letter explaining the change of benefit along with a 1099-R {code 7}.
How should this be treated? Is this elegible to be broken over the 4 year period.
Your advice is greatly appreciated.
He received a letter explaining the change of benefit along with a 1099-R {code 7}.
How should this be treated? Is this elegible to be broken over the 4 year period.
Your advice is greatly appreciated.
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