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Coronavirus qualified distribution - 10% Penalty

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    #1

    Coronavirus qualified distribution - 10% Penalty

    New client did not file 2020 federal tax returns and now wants to file. While preparing, discovered that he has a 1099-R for $600,000 early distribution from a qualified plan. Want to file form 8915-E to claim the Coronavirus qualified distribution. The question is - Is the 10% early distribution eliminated for 10% of the $600k or is it limited to 10% of $100K?
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    #2
    "Is the 10% early distribution eliminated for 10% of the $600k"

    No, nor is the $500K of income spreadable over 3 years or able to be recontributed (rolled over) within 3 years.

    "You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe Howard

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