lump sum distribution due to hardship (illness) code is a 3 (disability). will the amount in box 2a still be the taxable amount - 2b is not marked
01991
1 Best answer
MinhT
Expert Alumni
Jun 1, 2019 10:20:22 AM
Distributions from a retirement account for disability (code 3 in box 7) are taxable. So the amount shown in box 2a is taxable. However, the distribution is exempt from the early penalty withdrawal of 10% (if you are aged 59 1/2 or less).
1 Replies
MinhT
Expert Alumni
Jun 1, 2019 10:20:22 AM
Distributions from a retirement account for disability (code 3 in box 7) are taxable. So the amount shown in box 2a is taxable. However, the distribution is exempt from the early penalty withdrawal of 10% (if you are aged 59 1/2 or less).