IRS Publishes 2018 Form 8915B Instructions
The IRS has published the 2018 version of Instructions for Form 8915B: Qualified 2017 Disaster Retirement Plan Distribution and Repayments. As background, Form 8915B must be filed by participants who received a qualified disaster distribution from a SEP, SIMPLE, Roth IRA, 457 deferred compensation, qualified 401(k), pension, profit sharing, stock bonus or annuity plan in 2017. Specifically, any of the following must file: those who received a qualified 2017 disaster distribution in 2018, those who received such distribution in 2017 that is being included in their income over three years, and those who made a repayment of such distribution in 2018.
As a reminder, the 2017 disasters covered by the favorable tax treatment are Hurricane Harvey, Tropical Storm Harvey, Hurricane Irma, Hurricane Maria and the California wildfires. Distributions associated with these disasters are included in taxable income in the year in which the distribution was received or spread over three years, at the individual’s choice. The distributions are not subject to the additional tax for early distributions, which is generally 10 percent (25 percent for certain SIMPLE IRA distributions).
Form 8915B must be filed with an impacted individual’s tax return. Any plan participant seeking guidance should be directed to their accountant for assistance.