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RaifH
Expert Alumni

How do I get the penalty on an ira withdrawal to credit for for the year a child was born (secure act)

To get to that screen:

  1. After entering your 1099-R and answering the initial questions, it will take you back to the main 1099-R screen that says Here's your 1099-R info. Hit Continue.
  2. Answer the disaster distribution question and Continue.
  3. Hit Continue when it says Let's see if we can reduce your early withdrawal penalty.
  4. Identify the plan and press Continue. 

According to the IRS, "Qualified birth or adoption distributions. Attach a statement that provides the name, age, and TIN of the child or eligible adoptee" are classified as an "Other Distribution."

How do I get the penalty on an ira withdrawal to credit for for the year a child was born (secure act)

Holy cow that was harder than it seems it should've been.  Thank you.  I guess what confused me was I was looking for a checkbox to say that withdrawl was exempt combined with the reason not being listed specifically when I entered an amount.  

 

So I entered the amount:

TT1.PNG

 

How do I now attach the statement that provides the name, age, TIN of my twins?  I entered them as dependents previously in TT (where all my kids are listed)--is that sufficient to meet this requirement?

RaifH
Expert Alumni

How do I get the penalty on an ira withdrawal to credit for for the year a child was born (secure act)

I would think adding the twins to your tax return should offer sufficient proof. If the IRS does require more, you can submit a copy of Form 5329 on its own as well as copies of their birth certificates and social security cards. Please note that the distribution has to be made during the 1-year period beginning on the date your children were born to qualify for the exemption. 

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