How do I enter a 1099R distribution guided by 72T rules?

[rscharette]

72T?

[dmertz]

Enter the Form 1099-R exactly as received under Wages & Income (or Personal Income) -> Retirement Plans and Social Security -> IRA, 401(k), Pension Plan Withdrawals (1099-R), then answer the follow-up questions.

If the code on the Form 1099-R is code 2 or 7, TurboTax will automatically treat the distribution as not subject to an early-distribution penalty.  Otherwise, later when TurboTax prompts you enter amounts that are exempt from the early-distribution penalty, enter the amount of the distribution as the amount received as Equal Periodic Payments.

[beaumont4]

Turbo is not asking me if it is a periodic payment.

[toddlabhart]

If the code on the Form 1099-R is code 2 or 7, TurboTax will automatically treat the distribution as not subject to an early-distribution penalty.  Otherwise, later when TurboTax prompts you enter amounts that are exempt from the early-distribution penalty, enter the amount of the distribution as the amount received as Equal Periodic Payments.

What happens if the code is a 1?

[dmertz]

@toddlabhart , you sort of answered your own question.  For code 1, TurboTax will prompt you enter amounts that are exempt from the early-distribution penalty for particular reasons.  For an amount that you indicate was received as a series of substantially equal periodic payments, TurboTax will put the amount on Form 5329 line 2 with code 02.

[deannaw30]

My distribution code is 1 I entered the equal payment amount (the total amount on the 1099-r) and I am still being charged the 10% tax penalty. 

[HopeS]

For distribution code 1, TurboTax will prompt you to enter amounts that are exempt from the early-distribution penalty for particular reasons.  For an amount that you indicate was received as a series of substantially equal periodic payments, TurboTax will put the amount on Form 5329 line 2 with code 02. 

In TurboTax, please follow these steps:

1. After you have entered all your forms 1099-R, on the summary page Review your 1099-R Info, click Continue
2. Follow the interview until you arrive at the page titled Did you use your IRA to pay for any of these expenses?
3. Enter the amount of your distribution in the box next to Equal Periodic Payments and click Continue
4. Your early withdrawal penalty will be waived.

Below are snippets of what to look for once you enter all the Form 1099-R info. You will say " No" to" Did you take any disaster distributions in prior years?" Click Continue to the next page which states "Let's see If we can reduce your early withdrawal penalty"

 

@deannaw30