Reply To: IRA Distribution/Rollover

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#5437
Cares Act Guy
Participant

Thank you Alan.

Just to clarify, and assuming this is the same as disaster distributions.

May 1, 2020 taxpayer takes a $100,000 distribution that is qualified. By 10-15-2021 (and after extending the 2020 return), they repay $55,000. By 10-15-2022, and after extending the 2021 return, they repay $15,000. By May 1, 2020 they repay $15,000. $15,000 is never repaid.

Then (1) $45,000 2020 income which is spread over 3 years, so $15,000 reported in 2020 return. (2) The $15,000 payment in 2021 reduces the taxable amount to zero for 2021. (3) The $15,000 payment in 2022 reduces the taxable amount to zero.

So in this example no amended returns but $15,000 income is reported in 2020.

is this correct – if it follows disaster rules?