General Instructions

Future Developments

For the latest information about developments related to Form 8930 and its instructions, such as legislation enacted after they were published, go to www.irs.gov/form8930.

Purpose of Form

Use Form 8930 to report repayments of qualified disaster recovery assistance distributions made in 2012 that were not included on your 2011 Form 8930.

Parts I and II

Use Part I to report any repayments of qualified disaster recovery assistance distributions from retirement plans (other than IRAs).

Use Part II to report any repayments of qualified disaster recovery assistance distributions from IRAs.

Additional Information

See Pub. 4492-B, Information for Affected Taxpayers in the Midwestern Disaster Areas, for more details.

Who Must File

File Form 8930 if you made a repayment of a qualified disaster recovery assistance distribution in 2012 that was not included on your 2011 Form 8930.

When and Where To File

File Form 8930 with your 2012 Form 1040, 1040A, or 1040NR. If you are not required to file an income tax return but are required to file Form 8930, sign Form 8930 and send it to the Internal Revenue Service at the same time and place you would otherwise file Form 1040, 1040A, or 1040NR.

How Is a Qualified Disaster Recovery Assistance Distribution Taxed?

Generally, a qualified disaster recovery assistance distribution is included in your income in equal amounts over 3 years. However, you could have elected to include the entire distribution in your income in the year of the distribution. Any repayments made before you file your return and by the due date (including extensions) reduce the amount of the distribution included in your income.

Also, qualified disaster recovery assistance distributions are not subject to the 10% additional tax on early distributions.

You cannot take a qualified disaster recovery assistance distribution after 2009.

Qualified Disaster Recovery Assistance Distribution

A qualified disaster recovery assistance distribution is any distribution you received on or after the applicable disaster date (see Table 1, later) in 2008 or 2009 from an eligible retirement plan if both of the following conditions were met.

  1. Your main home was located in a Midwestern disaster area on an applicable disaster date (see Table 1, later).

  2. You sustained an economic loss because of the severe storms, tornadoes, or flooding in the disaster area in which your main home was located. Examples of an economic loss include, but are not limited to (a) loss, damage to, or destruction of real or personal property from fire, flooding, looting, vandalism, theft, wind, or other cause; (b) loss related to displacement from your home; or (c) loss of livelihood due to temporary or permanent layoffs.

If (1) and (2) applied, you could have generally designated any distribution in 2008 or 2009 (including periodic payments and required minimum distributions) from an eligible retirement plan as a qualified disaster recovery assistance distribution, regardless of whether the distribution was made on account of the severe storms, tornadoes, or flooding in the Midwestern disaster areas. Qualified disaster recovery assistance distributions were permitted without regard to your need or the actual amount of your economic loss.

A reduction or offset on or after the applicable disaster date in 2008 or 2009 of your account balance in an eligible retirement plan in order to repay a loan also could have been designated as a qualified disaster recovery assistance distribution. See Distribution of plan loan offsets, later.

Limit.   The total of your qualified disaster recovery assistance distributions for 2008 and 2009 from all plans was limited to $100,000. If you had distributions in excess of $100,000 from more than one type of plan, such as a 401(k) plan and an IRA, you could have allocated the $100,000 limit among the plans any way you chose.

Eligible retirement plan.   An eligible retirement plan can be any of the following.
  • A qualified pension, profit-sharing, or stock bonus plan (including a 401(k) plan).

  • A qualified annuity plan.

  • A tax-sheltered annuity contract (a 403(b) plan).

  • A governmental section 457 deferred compensation plan.

  • A traditional, SEP, SIMPLE, or Roth IRA.

Distribution of plan loan offsets.

A distribution of a plan loan offset is a distribution that occurs when, under the terms of a plan, the participant's accrued benefit is reduced (offset) in order to repay a loan. A distribution of a plan loan offset amount can occur for a variety of reasons, such as when a participant terminates employment or does not comply with the terms of repayment. Plan loan offsets are treated as actual distributions and are reported on Form 1099-R, box 1.

Main home.   Generally, your main home is the home where you live most of the time. A temporary absence due to special circumstances, such as illness, education, business, military service, evacuation, or vacation, will not change your main home.

Additional tax.    Qualified disaster recovery assistance distributions were not subject to the 10% additional tax (or the 25% additional tax for certain distributions from SIMPLE IRAs) on early distributions and are not required to be reported on Form 5329. However, any distributions you received in excess of the $100,000 qualified disaster recovery assistance distribution limit may have been subject to the additional tax.

Note.

If you chose to treat a distribution as a qualified disaster recovery assistance distribution, it is not eligible for the 20% Capital Gain Election or the 10-Year Tax Option. For information on those options, see the instructions for Form 4972.

Repayment of a Qualified Disaster Recovery Assistance Distribution

If you choose, you can generally repay any portion of a qualified disaster recovery assistance distribution that is eligible for tax-free rollover treatment to an eligible retirement plan. Also, you can repay a qualified disaster recovery assistance distribution made on account of hardship from a retirement plan. However, see Exceptions, below, for qualified disaster recovery assistance distributions you cannot repay.

You have 3 years from the day after the date you received the distribution to make a repayment. The amount of your repayment cannot be more than the amount of the original distribution. Amounts that are repaid are treated as a qualified rollover and are not included in income. Also, solely for purposes of the one-rollover-per-year limitation for IRAs, a repayment of a qualified disaster recovery assistance distribution to an IRA is not considered a qualified rollover.

Include on Form 8930 any repayments you make during 2012 that were not included on your 2011 Form 8930. If you make a repayment in 2012, you may be eligible to amend your 2009, 2010, or 2011 return. See Amending Form 8930 below.

Also file Form 8606, Nondeductible IRAs, to report any repayment of a nondeductible contribution to a traditional IRA on line 1 of Form 8606. If you make a repayment of a previously deductible contribution to a traditional IRA, do not file Form 8606 solely because of such repayment. If you make a repayment to a Roth IRA, see Pub. 590 to figure your basis.

Exceptions.   You cannot repay the following types of distributions.
  1. Qualified disaster recovery assistance distributions received as a beneficiary (other than a surviving spouse).

  2. Required minimum distributions.

  3. Periodic payments (other than from an IRA) that are for:

    1. A period of 10 years or more,

    2. Your life or life expectancy, or

    3. The joint lives or life expectancies of you and your beneficiary.

  
2012 is the last year you can repay a qualified disaster recovery assistance distribution.

Amending Form 8930

If you make any repayments during 2012, include the repayments on your 2012 Form 8930 if they were not included on your 2011 Form 8930. You may be able to file an amended return for 2009, 2010, or 2011 if either of the following applies.

  • You elected to include all of your qualified disaster recovery assistance distributions in income for 2009 (instead of over 3 years) on your original return.

  • You received a qualified disaster recovery assistance distribution in 2009 and included it in income over 3 years. See the example below.

Example 1.

You received a qualified disaster recovery assistance distribution in the amount of $90,000 on June 15, 2009. You chose to spread the $90,000 over 3 years ($30,000 in income for 2009, 2010, and 2011). On May 19, 2012, you make a repayment of $45,000. The repayment of $45,000 can be carried back to 2009, 2010, or 2011.

Example 2.

Assume the same facts as in Example 1, except you also want to make a repayment of $10,000 on August 20, 2012. In this case, you cannot make a repayment of $10,000 since the 3-year period for making a repayment has passed.

File Form 1040X, Amended U.S. Individual Income Tax Return, to amend a return you have already filed. Generally, Form 1040X must be filed within 3 years after the date the original return was filed, or within 2 years after the date the tax was paid, whichever is later.


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