When doing my 2023 Income Tax I noticed that TurboTax Deluxe Desktop generates form 5329-t entering a value on line 2 of Part I, with an exception number of 12.
This is being generated automatically after entering a 1099-R with the distribution code in box 7 being a "U". This distribution is already exempt from early distributions, and it is not an early distribution as I am older than 59 1/2.
When I look at the IRS instructions for Form 5329, it says that exception 12 is for "Distributions incorrectly indicated as early distributions by code 1, J, or S in box 7 of Form 1099-R. Include on line 2 the amount you received when you were age 591/2 or older." Exception 15 is "Distributions that are dividends paid with respect to stock described in section 404(k)" which is what a distribution code "U" is in box 7 of the 1099-R.
I've had this same Distribution coded U in the past few years and Form 5329 was never generated before, however when I opened up my previous two years TT programs, there was an update that took place and now form 5329 is generated for my pervious taxes. When I look at my printed tax form there is no Form 5329.
Why is TurboTax generating this form when it is not needed?
Thanks,
GS
