My bank's 1099-R form used code "J" for "Early distribution from a Roth IRA, no known exception." As far as I can tell, TurboTax is not offering me the option to include a Form 5329 to state that the exception is a $1,000 emergency personal expense distribution. This exception has been permitted in tax law since 2024.
I talked to my bank and they said this needs to be clarified by my tax preparer, and not Form 1099-R. As far as I can tell in my research, they are correct: They were supposed to use Code J, and I am supposed to file a Form 5329 and list exception number 23 on Line 2 (See: https://www.irs.gov/instructions/i5329).
How do I get Form 5329 included before I file, so that I don't get a 10% early distribution penalty? Thank you!
