My 1099R box 7 lists my distribution as 1. According to the IRS web page, “a qualified individual may treat a distribution that meets the requirements to be a coronavirus-related distribution as such a distribution, regardless of whether the eligible retirement plan treats the distribution as a coronavirus-related distribution.”
When I leave it as 1, and tell turbo tax it was for corona virus, they still say I owe the 10% penalty. When I change it to 2, and tell turbo tax it was for corona, it says I don’t have to pay the 10%.
Since according to the IRS I can treat it as corona virus distribution even if my 401k didn’t, is it okay if I just change it to a 2?
