Form 5329 was apparently completed to remove a penalty for early withdrawal of funds from a retirement account.
The exemption code of 12 would indicate that the distribution was incorrectly coded as being subject to an early withdrawal penalty because the recipient had not reached the age of 59 1/2. This would happen if it was an early distribution but you indicated that there was an exception to the penalty. You can learn more about exceptions to the early withdrawal penalties in this IRS notice.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
