I have an add on question to this topic @Mike9241
I was separated from my job at age 55 and took advantage of the NUA option and moved 100% of the company stock to a brokerage account last year(2025). I believe I was able to do this and would avoid the 10% penalty. I did get a 1099-R based on this activity and the numbers, taxable amt, box 6 NUA, etc all look good.
In the 1099-R, box 7 the distribution code is 1 which seems incorrect. I believe maybe this should be 2? Based on my activity and method I understood that I would avoid the 10% penalty and only pay tax on the Box 2a amount, but it appears Turbo Tax isn't work correctly or my 1099-R is incorrect.
Is there a different form or do I need to do something differently with the tax forms?
Thanks for any help.
