1099-R distribution code W for fees on a long term care insurance policy - TTax is asking if Im receiving "these payments" after age 59-1/2 - Is it penalizing me?

I have a LTC insurance policy that takes fees out every year - it issues a 1099-R with distribution code W - which means these are fee payments - not distributions or payments to me.

Turbo Tax asks me if I receive these payments regularly and if I receive them before Im 59-1/2

WHY? Am I getting penalized?

This is not an IRA.

4227

Expert Alumni

Jun 4, 2019 4:56:42 PM

You do not need to report a 1099-R with code W in box 7. You can safely delete this 1099-R from your return.

Please read this TurboTax answer form Jason Speciner:

https://ttlc.intuit.com/replies/5565675

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1099-R distribution code W for fees on a long term care insurance policy - TTax is asking if Im receiving "these payments" after age 59-1/2 - Is it penalizing me?