I have 2 10-99Rs and 1 is 457 plan. I get Fed tax money back from it. Can I put 457 amount in "other reasons" and get discount for pulling $ from a qual. retirement plan?

[dmertz · Accepted solution]

Generally, no.  A Form 1099-R for a distribution from a 457(b) plan should already have code 2 in box 7 to indicate any 475(b) distributions that are not subject to an early-distribution penalty.  However, if you received a distribution from a 457(b) plan that was not attributable to amounts rolled over to a 457(b) plan from an non-457(b) plan and the payer did not use code 2 (an unlikely mistake for a 457(b) plan administrator to make), you can list the distribution in the Other reason box to eliminate the 10% early-distribution penalty that does not apply to such a distribution.