Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 1
posted Feb 2, 2021 11:44:17 AM

1099Rs

I am 78 years old, I received a 1099R that with a 1 in in Box 7. (early distribution).  TurboTax is adding the 10% penalty, I don't think this is correct because of my age.  Please Help

0 2 1189
2 Replies
Expert Alumni
Feb 2, 2021 12:38:02 PM

You should contact who ever issued the 1099R if you think there is a mistake.  The code "1" is issued if the distribution was made to a recipient under the age of 59 1/2.  Check the social security number on the 1099R to make sure it is yours.  If you have someone living with you, its possible a c/o address was used and your name is populating the name field.  Check the social security number and it that was correct, I would contact the provider of the 1099R to get the coding changed to "7".

 

If this represents a Roth IRA and you have not had the funds in 5 years, that may be causing the coding of 1.  Talk to who provided you the form to find out more.

 

Level 15
Feb 2, 2021 5:42:55 PM

If the Form 1099-R has indeed been issued to you and for some inexplicable reason the payer will not make the correction, you can report the Form 1099-R as is and claim an Other reason exception to the early distribution penalty on the taxable amount of this distribution.

 

Code 1 is never permitted to be used to report a distribution from a Roth IRA.  A Form 1099-R issued to an individual who is age 78 and the payer does not know if the individual has had a Roth IRA for 5 years, the payer must use code T.