cares act IRA distribution
Have a client who indicated he wants to take a Cares act distribution of $100k from his IRA. He is 65 yrs old. Technically he doesn’t meet the definitions of a qualified distribution, but wants to know how strict the IRS might be in looking at these distributions?
Permalink Submitted by Alan - IRA critic on Fri, 2020-12-11 18:54
If his qualification for a CRD is borderline, the IRS will probably be lenient. If he clearly does not qualify, then reporting as a CRD on Form 8915 E would be tax evasion. He is beyond penalty age, so is the purpose of this just to split the taxes over 3 years?
Permalink Submitted by [email protected] on Fri, 2020-12-11 19:29
His thinking was, yes, split over the 3 years and then put some or all back as a rollover.