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kimnclem
New Member

I have a 1099-R form & used the money to pay bills, can I select the Another Reason on the page that ask Did you use your IRA to pay for any of these expenses?

 
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1 Reply
dmertz
Level 15

I have a 1099-R form & used the money to pay bills, can I select the Another Reason on the page that ask Did you use your IRA to pay for any of these expenses?

No, using the money to pay bills is not an exception to the early-distribution penalty.

 

"Other reason" exceptions rarely apply and are listed in the instructions for line 2 of Form 5329:

https://www.irs.gov/instructions/i5329#idm140008386984192

 

The only one likely to potentially apply to an IRA distribution is if the distribution is a qualified disaster distribution, and TurboTax handles that for you automatically.

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