Forbes has published an article, “Tips For 2020 Tax Returns With IRA Distributions,” which discusses how retirees should correctly file their tax in particular to avoid penalty on a coronavirus-related distribution. The article begins as follows:
Many retirees and people who took Covid-related retirement plan distributions might need some extra time to work through their 2020 tax returns.
Those who took distributions from traditional IRAs at any point during 2020 will receive a Form 1099-R reporting the distributions to them and the IRS. Putting these on your tax return to minimize taxes might be a little different than in the past.
To see the full article, click here: “Tips For 2020 Tax Returns With IRA Distributions”
Posted by Jessica Ji, Associate Editor, Wealth Strategies Journal.