Retirement tax questions
For distribution code 1, TurboTax will prompt you to enter amounts that are exempt from the early-distribution penalty for particular reasons. For an amount that you indicate was received as a series of substantially equal periodic payments, TurboTax will put the amount on Form 5329 line 2 with code 02.
In TurboTax, please follow these steps:
- After you have entered all your forms 1099-R, on the summary page Review your 1099-R Info, click Continue
- Follow the interview until you arrive at the page titled Did you use your IRA to pay for any of these expenses?
- Enter the amount of your distribution in the box next to Equal Periodic Payments and click Continue
- Your early withdrawal penalty will be waived.
Below are snippets of what to look for once you enter all the Form 1099-R info. You will say " No" to" Did you take any disaster distributions in prior years?" Click Continue to the next page which states "Let's see If we can reduce your early withdrawal penalty"
