Taking a distribution from a retirement account… do I have to report the distribution?

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Taking a distribution from a retirement account… do I have to report the distribution?

No but lets see how the 2020 forms look

Transcription:

So I hear you’re talking about taking a distribution from a retirement account with the intent of paying it back within three years Do I have to report the distribution if timely paid back, what this investor is talking about is you know what the COVID-19 there was a big stimulus plan that came out called the cares act, you guys can get more information about this and other opportunities at simple passive cash flow, calm slash COVID-19. One of the biggest things that pretty much most of us can take advantage of is they created an exception in there that you can withdraw up to $100,000 out of your retirement accounts and not have to pay the normal 10% early withdrawal penalty. They kind of waive that for those impacted by COVID-19. And you don’t have to be infected with COVID-19. You just have to be impacted In my opinion, and I’m not a CPA, you talk to your own CPA about this but way a lot of us look at it as like we are all in impacted by what’s happening, what a lot of guys are doing is they’re taking $100,000 out of their retirement account, and also out of their spouses, maybe possibly $200,000 total. So that’s where this question stems from. So back to the question was do you have to pay it back in three years. So the way the it’s written, you don’t have to pay back the taxes until three years, I do believe you have to create some kind of plan, like whether you do it like one third every year, but nobody really knows yet. They just created it, put it into law, and we’ll see how the 2020 forms look on how you declare that but you know, the big thing and we don’t know how you have to pay it back quite yet. I would say consult your CPA on that one, but do know the 10% or the withdrawal penalty is wave if you’re demonstrating impact.

 

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