SUPPLEMENT TO ACCOMPANY
Not planning to replace these distributed funds back into their IRA or 401(k) plan, she must pay the associated income tax (but, no 10% penalty). She can pay the entire tax when filing their 2020 tax return. Or, instead, she can choose to pay this tax in equal installments in her 2020, 2021 and 2022 tax returns (presumably with no interest). ................
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