☰
✕
Sign In

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 2
posted Mar 11, 2023 11:43:56 AM

Early Distribution Penalty on an RMD from an inherited Ira

I have had an Inherited/Beneficiary  IRA for the past 8 years and each year Raymond James sends me a check for the RMD. This year when entering this into Turbo Tax they are saying I own a 10% penalty for an "early distribution" from a retirement plan or IRA. Nearly certain I have answered all the question correctly (e.g. was this IRA inherited?). I am 55 and the original account owner was born in 1936.  Any ideas why this is occurring?

0 1 545
1 Replies
Expert Alumni
Mar 11, 2023 12:22:25 PM

I am unable to duplicate the error based on what the entries should be and we cannot see your return in this forum. However, one item to check that you didn't mention is the distribution code in box 7.  It should be a code 4.  

 

You might also delete the form 1099R completely using the steps below for online versions and re-enter the form information.  If the error persists you might repost with your step-by-step for the 1099R questions and someone may be able to duplicate your situation. 

 

1. Select "Tax Tools" in the left hand menu
2. Select "Tools"
3. Select "Delete a Form"
4. Find the 1099-R 
5. "Delete"
6. "Confirm Deletion"