1099-R Code 1L Covid Treatment

Technical topics regarding tax preparation.
#1
Posts:
195
Joined:
21-Feb-2015 9:44am
Location:
College Station, TX
Generally, qualified individuals can treat retirement plan distributions as coronavirus distributions and obtain relief from the 10% early distribution penalty, and report the income over three years.

My interpretation of Notice 20-50 is that 1099-R with Code 1L (deemed distributions) are not permitted this treatment.

Could someone confirm that? Thank you.
 

#2
Posts:
5
Joined:
16-Apr-2021 3:54pm
Location:
PA
That's right. 1099-R Code L is not eligible for CRD treatment (code L is a loan treated as a deemed distribution under 72(p).
 

#3
Posts:
195
Joined:
21-Feb-2015 9:44am
Location:
College Station, TX
Thank you very much!
 


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