How do I claim the early withdrawal penalty waiver for a qualified birth when submitting my 1099-R? I don't see it as an option under exceptions for the penalty.

[DoninGA · Accepted solution]

• Identify Exception: When prompted about early withdrawal penalties, indicate that an exception applies. Select "Other" or "Another reason" to enter the amount, as a specific "birth/adoption" code might not be listed in the dropdown.
• Enter Amount: Enter the amount of the distribution that qualifies (up to $5,000).
• File Form 5329: The software will use Form 5329 to report this exception to the IRS, exempting the amount from the 10% penalty.
• Documentation: You may need to keep records of the birth or adoption (e.g., birth certificate) in case of an IRS audit.