dmertz
Level 15

Retirement tax questions

If the Form 1099-R has code 1, filing either Form 5329 stand-alone or Form 1040 with Schedule 2 is required to report the 10% early-distribution penalty.  Form 5329 cannot be e-filed stand-alone.  Having 10% withheld will avoid any failure-to-file penalty, but avoiding the failure-to-file penalty doesn't eliminate your obligation to file.