Arnold was affected by Hurricane ian in 2022. On November 13,2022, he took out $30,000 from his retirement account and wants to spread the tax due over 3 years like he did for his COVID distribution in 2020. How can he do this?

For certain federally declared disasters, the IRS may provide tax relief measures, which can include the option to spread out the tax liability from retirement account distributions over a period of time. The relief measures for Hurricane Ian specifically allowed for such provisions. To take advantage of the tax relief for Hurricane Ian, Arnold should ensure that he qualifies for the relief by meeting the conditions set by the IRS. Generally, this would include being a resident in the disaster area and having sustained economic losses due to the hurricane. If Arnold qualifies, he can elect to spread the tax liability from his $30,000 retirement distribution over a three-year period. This means he can report one-third of the income on his tax return for the year of the distribution (2022) and one-third on his tax returns for the next two years (2023 and 2024). To properly report this on his tax return, Arnold should: 1. Indicate the distribution on Form 8915-E, Qualified 2020 Disaster Retirement Plan Distributions and Repayments (or a similar form provided by the IRS for the specific disaster), which is used to report qualified disaster retirement plan distributions and repayments. 2. Follow the instructions on the form to report the distribution and elect the three-year spread for the taxable income. 3. Attach Form 8915-E to his federal tax return for each of the three years he is including the income. It's important for Arnold to keep good records of the distribution and to track the amounts reported

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