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jmorgan3813
Level 1

Does TurboTax correctly file for new parents withdrawing $5000 from their IRA early? Typically there is a 10% fee, but the SECURE act of 2019 waves this for new parents.

 
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DoninGA
Level 15

Does TurboTax correctly file for new parents withdrawing $5000 from their IRA early? Typically there is a 10% fee, but the SECURE act of 2019 waves this for new parents.

If you have a child born in 2020 and had a distribution from a tax deferred retirement account reported on a Form 1099-R, there will be questions following the entry of the form for any exceptions to the 10% early withdrawal penalty based on the Secure Act of 2019.

 

To enter, edit or delete a form 1099-R -

  • Click on Federal Taxes (Personal using Home and Business)
  • Click on Wages and Income (Personal Income using Home and Business)
  • Click on I'll choose what I work on (if shown)
  • Scroll down to Retirement Plans and Social Security
  • On IRA, 401(k), Pension Plan Withdrawals (1099-R), click the start or update button

Or enter 1099-r in the Search box located in the upper right of the program screen. Click on Jump to 1099-R

View solution in original post

2 Replies
fanfare
Level 15

Does TurboTax correctly file for new parents withdrawing $5000 from their IRA early? Typically there is a 10% fee, but the SECURE act of 2019 waves this for new parents.

Click CONTINUE and answer the follow-up questions for 1099-R to report your amount not subject to the additional tax and your reason.

DoninGA
Level 15

Does TurboTax correctly file for new parents withdrawing $5000 from their IRA early? Typically there is a 10% fee, but the SECURE act of 2019 waves this for new parents.

If you have a child born in 2020 and had a distribution from a tax deferred retirement account reported on a Form 1099-R, there will be questions following the entry of the form for any exceptions to the 10% early withdrawal penalty based on the Secure Act of 2019.

 

To enter, edit or delete a form 1099-R -

  • Click on Federal Taxes (Personal using Home and Business)
  • Click on Wages and Income (Personal Income using Home and Business)
  • Click on I'll choose what I work on (if shown)
  • Scroll down to Retirement Plans and Social Security
  • On IRA, 401(k), Pension Plan Withdrawals (1099-R), click the start or update button

Or enter 1099-r in the Search box located in the upper right of the program screen. Click on Jump to 1099-R

View solution in original post

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