dmertz
Level 15

Retirement tax questions

Earlier I was marking the wrong box in forms mode on TurboTax's 1099-R form used to indicate the a code 7 Form 1099-R is actually subject to an early-distribution penalty.  The age-59½ question apparently marks the A1 box on TurboTax's 1099-R form based on the answer to the question as to whether any of the distribution was received before age 59½, so it seems that the workaround is to answer No even if some was received prior to age 59½ since the question is really just asking if any of the distribution is subject to penalty.  (Unfortunately, for other types of distributions where this question is appropriate, answering Yes causes TurboTax to treat the entire distribution as subject to penalty instead of asking how much is subject to penalty, forcing the user to split the Form 1099-R into two.)