dmertz
Level 15

Retirement tax questions

Because this distribution was from a Roth IRA, you must mark the box indicating that you have more than one value in box 7 and select code J for the second code.  The code J is necessary to indicate that it's from a Roth IRA.

 

If you were over age 59½ at the time of this distribution, you'll need to claim an Other reason exception on line 2 of your 2020 Form 5329 to the 10% early-distribution penalty on the $677.81, otherwise you owe a $68 penalty on 2020 Form 5329.

 

Entering it as a substitute Form 1099-R would only serve to prevent you from e-filing.  The form is not missing or erroneous since the deadline for the payer to generate the actual form is not until January 2022.