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Retirement tax questions
Thank you @dmertz for your reply.
Box 7 on both the Form 1099R has distribution code 1.
Is this correct?
Or we need to get it corrected to 2, which is early distribution exception applied?
https://www.irs.gov/pub/irs-drop/n-20-50.pdf
Section 3 Point A on page 11, says
"If a payor is treating the payment as a coronavirus-related distribution and no other appropriate code applies, the payor is permitted to use distribution code 2 (early distribution, exception applies) in box 7 of Form 1099-R. However, a payor also is permitted to use distribution code 1 (early distribution, no known exception) in box 7 of Form 1099-R."
‎January 30, 2021
7:00 PM