Thank you for the lightning-fast response.
On 2024 - I had already started amending my 2024 taxes to add the 5329, which is assessing the 6% penalty. This seems relatively straightforward, and is coming out as expected.
On 2025 - It's my belief, like you say, that the timeline by which I need to withdraw the money to avoid the 2nd 6% penalty is 4/15/26 (plus extensions). I already met the 4/15/26 deadline you mentioned. The IRS is acting like as soon as it turned 2026, 1/1/26, the 2nd 6% penalty applies, which makes no logical sense to me. It's like being double penalized, like they aren't accounting for the successive tax years' deadlines. I have seen what you describe being discussed in other help threads, adding the 1099-R manually, but I was still having trouble with it wanting to assess a penalty. I think it has to do with not reporting the distribution properly. I need to look through it carefully, and hopefully get back to you with a more refined question.
