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I'm no tax expert but it would appear Code 1 is incorrect. I would question the broker. I assume you did a hands off known as an "in-kind" transfer between the 401k and a taxable brokerage account. In support of Code 2, check this IRS website. https://www.irs.gov/pub/irs-prior/i1099r--2025.pdf Then go to Table 1 on page 18, it states: 2—Early distribution, exception applies. • A distribution from a qualified retirement plan after separation from service in or after the year the participant has reached age 55. A 401k is a qualified retirement plan.   It would appear the 1099-R is incorrectly showing Code 1 from Table 1. Perhaps because they didn't consider Code 2. 1—Early distribution, no known exception. Use Code 1 only if the participant has not reached age 591/2, and you do not know if any of the exceptions under Code 2, 3, or 4 apply.   Also, if you look at this IRS website: https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-exceptions-to-tax-on-early-distributions It states: Exceptions to the 10% additional tax "the employee separates from service during or after the year the employee reaches age 55 (age 50 for public safety employees of a state, or political subdivision of a state, in a governmental defined benefit or defined contribution plan)"

While I definitely agree that Intuit and TurboTax are SEVEVERLY lacking, most of what you are referring to is not their fault.   As the other answer indicated, the problems with Form 5695 are primarily because of the IRS, not TurboTax (although it is rather surprising that TurboTax let you file when it was a known IRS problem).   Imports are primarily based on the bank uploading your information, so most likely that is a Chase problem, not TurboTax.   If you decide to use different software in the future, personally, my first pick would be TaxAct.

Below are the details I encountered while I was using Turbotax for 2025 Tax year. At Investment income "Capital Loss Carryover", TT asked me to enter my capital gains and losses info of  tax year 2024.   After all my info were entered with AMT allowable loss -$650 from year 2024, clicked Continue button.  "Here are your capital loss carryover amounts" screen "Capital loss carryover from 2024" column shows Total $0.00 instead of -$650.   

https://turbotax.intuit.com/tax-tools/efile-status-lookup/    Sometimes people get confused by the “summary” given by TurboTax and use the wrong amount for the federal refund.  Make sure you are only using the federal refund amount, and not an amount that combined your federal and state refunds.     Your federal refund amount is on line 35a of your Form 1040   https://www.irs.gov/refunds

@Confusedmom26 You do not have to wait for your daughter to amend.   Waiting will not help you at all.   You can print, sign and mail your own return that claims her as a dependent any time you have your return ready to put in an envelope, or you can get an IP PIN and try to e-file.    Kids do this all. the. time. and the parents end up with the inconvenience of having to file by mail or get IP PIN's.

This is a known experience that is being addressed by the development team.  You may use the link in the TurboTax help article below to register your email address and be notified as the program is updated:   Why do I get "Something went wrong" screen when I try to add Farm Income?   @MMZTU   

@Confusedmom26 Enter her as a dependent with an IP PIN and e-file.  There is no need for you to wait for her to amend her tax return.  It will take the IRS 16 weeks of longer to process the amended return.

Thanks. I do not see the waiver requirement of paying more than 110% of my prior year tax as also being contingent on when payments are made. I made timely estimated tax payments prior to each of the four deadlines and ended up at 117%. I specifically targeted the amount paid to be more than 110% to avoid the penalty. Based on the requirement of "you can avoid a penalty by paying at least 110% of your total tax from the prior year", should I not qualify for the waiver even if I withheld nothing and made one estimated payment prior to the fourth deadline in January? TT obviously knows how much my 2024 total tax was (because it filled it in for me) and knows how much I paid for 2025. Years ago, I recall a pretty simple process of claiming a waiver when you had paid more than 110% but I can't find a way to do that now.  

This is a known experience that is being addressed by the development team.  You may use the link in the TurboTax help article below to register your email address and be notified as the program is updated:   Why do I get "Something went wrong" screen when I try to add Farm Income?    

This is a known experience that is being addressed by the development team.  You may use the link in the TurboTax help article below to register your email address and be notified as the program is updated:   Why do I get "Something went wrong" screen when I try to add Farm Income?