If you received a qualified disaster-related retirement distribution in 2024, you may have elected to spread the taxable income over three years using Form 8915-E (or Form 8915-F, which replaced 8915-E starting in 2021).
Key Points:
- The election to spread the income had to be made on your 2024 tax return.
- You will report one-third of the taxable amount on each of your 2024, 2025, and 2026 returns.
- You must continue to use Form 8915-F to report the second and third portions of the distribution in 2025 and 2026.
- If you repaid any portion of the distribution in 2025, you can also report that repayment on Form 8915-F to reduce your taxable income.
Note: These rules apply only to distributions that qualify under disaster relief provisions, such as those related to federally declared disasters or COVID-19.