Solved: If I have 3 1099-Rs, two were rollovers (Code G and H) and one was a early distribution (J). Should the 10% penalty only be applied to the 1 that was early-distribution?
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jon-buck-2010
New Member

If I have 3 1099-Rs, two were rollovers (Code G and H) and one was a early distribution (J). Should the 10% penalty only be applied to the 1 that was early-distribution?

Nevermind!

I found the forms that TT was using to calculate the final number and saw for myself how it was being calculated.  Everything is fine.

1 Best answer

Accepted Solutions
macuser_22
Level 15

If I have 3 1099-Rs, two were rollovers (Code G and H) and one was a early distribution (J). Should the 10% penalty only be applied to the 1 that was early-distribution?

Correct.   The G and H are direct rollovers of a 401(k) and a 401(k) Roth.  Both are not taxable.

The J is a Roth distribution.  Only the earnings are taxable and subject to a penalty.  Your own prior contributions withdrawn are not.


You can always withdraw your own Roth contributions tax and penalty free.

Enter a 1099-R here:

Federal Taxes,
Wages & Income
I’ll choose what I work on (if that screen comes up),
Retirement Plans & Social Security,
IRA, 401(k), Pension Plan Withdrawals (1099-R).

OR Use the "Tools" menu (if online version under My Account) and then "Search Topics" for "1099-R" which will take you to the same place.

Be sure to choose which spouse the 1099-R is for if this is a joint tax return.
Be sure to pick the correct 1099-R type: Standard 1099-R, CSA-1099-R, CSF-1099-R, RRB-1099-R.

[NOTE: When you get to the "Your 1099-R Entries" screen where you can add another 1099-R, use "continue" to keep going as there are additional interview questions after that screen in most cases. You can always return as shown above.]

One of the followup questions will ask for your prior year contributions not previously withdrawn. Those contributions that still remain in the Roth will not be taxed or subject to a early withdrawal penalty. That will add a 8606 form to your tax return with the Roth contribution and tax calculation in part III.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

View solution in original post

1 Reply
macuser_22
Level 15

If I have 3 1099-Rs, two were rollovers (Code G and H) and one was a early distribution (J). Should the 10% penalty only be applied to the 1 that was early-distribution?

Correct.   The G and H are direct rollovers of a 401(k) and a 401(k) Roth.  Both are not taxable.

The J is a Roth distribution.  Only the earnings are taxable and subject to a penalty.  Your own prior contributions withdrawn are not.


You can always withdraw your own Roth contributions tax and penalty free.

Enter a 1099-R here:

Federal Taxes,
Wages & Income
I’ll choose what I work on (if that screen comes up),
Retirement Plans & Social Security,
IRA, 401(k), Pension Plan Withdrawals (1099-R).

OR Use the "Tools" menu (if online version under My Account) and then "Search Topics" for "1099-R" which will take you to the same place.

Be sure to choose which spouse the 1099-R is for if this is a joint tax return.
Be sure to pick the correct 1099-R type: Standard 1099-R, CSA-1099-R, CSF-1099-R, RRB-1099-R.

[NOTE: When you get to the "Your 1099-R Entries" screen where you can add another 1099-R, use "continue" to keep going as there are additional interview questions after that screen in most cases. You can always return as shown above.]

One of the followup questions will ask for your prior year contributions not previously withdrawn. Those contributions that still remain in the Roth will not be taxed or subject to a early withdrawal penalty. That will add a 8606 form to your tax return with the Roth contribution and tax calculation in part III.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

View solution in original post

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