@Cmkayser21 wrote:
It is my understanding if you are totally disabled the 10% penalty does not apply. Since this is the case what is the correct code in Line 7 that should have been used so TurboTax does not apply the Penalty?
You might have entered something incorrectly. I suggest deleting the 1099-R totally and re-enter. (If there is a 5329 form, delete that also)
A box 7 code 3 does not apply any early distribution penalty. A pension is never subject to a penalty.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
