Shouldn't the IRA Roth early withdraw penalties due to COVID19 waived (up to $100,000)? The 401K withdraw penalty was waived but not the IRA Roth when entering 1099-R.

Forum|Forum|5 years ago
March 8, 2021
1 reply
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I have entered the 401K withdraw information on 1099-R and there was a question whether it was COVID-19 related withdraw which waived the early withdraw penalty. However, I don't get the same option when entering the Roth IRA information and get penalized in this case. Is it missing a form in this case?

TurboTax Deluxe Online

dmertz

Level 15

Perhaps your Roth account is not a Roth IRA but is instead a designated Roth account in the 401(k), with the Form 1099-R including code B in box 7. If so:

In online TurboTax a workaround is needed to get around the flaw in TurboTax that prevents it from asking if the distribution is COVID-19 -related when there is a code B in box 7. Enter the Form 1099-R as is but omit the code B, enter only the code 1, 2 or 7 (if box 7 has only code B, temporarily enter code 7 instead). Complete the follow-up questions, then, when you reach the Review Your 1099-R Info page, edit this 1099-R and add the code-B selection. The COVID-19-related information will remain even though you won't have access to those questions with the code B present.