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Form 5329, line 2 code 12
form 5329, line 2. My 2016 tax return had code 12 on it , although I have been using the SEPP checked when turbo tax prompted. Question is shouln't it be code 2 and not 12. Will it cause a problem with the irs?
Answer
June 7, 2019
It depends what the reason for the exception was. The codes are below. Code 12 is other.
Exception 01 Qualified retirement plan distributions (does not apply to IRAs) you receive after separation from service when the separation from service occurs in or after the year you reach age 55 (age 50 for qualified public safety employees).
02 Distributions made as part of a series of substantially equal periodic payments (made at least annually) for your life (or life expectancy) or the joint lives (or joint life expectancies) of you and your designated beneficiary (if from an employer plan, payments must begin after separation from service).
03 Distributions due to total and permanent disability. You are considered disabled if you can furnish proof that you cannot do any substantial gainful activity because of your physical or mental condition. A medical determination that your condition can be expected to result in death or to be of long, continued, and indefinite duration must be made.
04 Distributions due to death (does not apply to modified endowment contracts).
05 Qualified retirement plan distributions up to the amount you paid for unreimbursed medical expenses during the year minus 10% (or 7.5% if you or your spouse were born before January 2, 1952) of your adjusted gross income (AGI) for the year.
06 Qualified retirement plan distributions made to an alternate payee under a qualified domestic relations order (does not apply to IRAs).
07 IRA distributions made to certain unemployed individuals for health insurance premiums.
08 IRA distributions made for qualified higher education expenses.
09 IRA distributions made for the purchase of a first home, up to $10,000.
10 Qualified retirement plan distributions made due to an IRS levy.
11 Qualified distributions to reservists while serving on active duty for at least 180 days.
12 Other (see Other next). Also, enter
this code if more than one exception
applies.
