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Retirement tax questions
The custodian has coded the Form 1099-R correctly with code 7 for distributions made after age 59½.
Code 2 and code 7 both mean that the distribution is not subject to an early-distribution penalty and TurboTax treats both as not being subject to any early-distribution penalty. If you are seeing a penalty, it's for some other reason or you've entered something incorrectly.
March 21, 2025
2:15 PM