To input it into Turbo Tax:
1. Click Federal
on the left-hand side menu.
2. Click Income
across the top.
3. Scroll
down to Retirement Plans and Social Security and click Show more.
4. Click Start
or Revisit by IRA, 401(k), Pension Plan Withdrawals (1099-R).
Enter the $26.83 1099-R, and keep going till you get to the page shown below.
If you're still not getting the penalty applied, go to My Info and check the recipients age: s/he needs to be over 70 1/2.
It's figured on Form 5329, and then carried to Schedule 4. From there, it goes to Form 1040, line 14 and gets figured in with your other tax.
If you have other retirement accounts, you figure the penalty based on them as a whole, instead of each fund. An example:
10,000 Retirement fund A
25,000 Retirement fund B
10 Retirement fund C
-----------
35,010 Total of all funds
