On my 1099-R, I check on other ways to reduce my taxes on it and put IRA LEVI and my money went up........ did I do something wrong?

[dmertz · Accepted solution]

It is almost certainly incorrect to put an amount in the IRS levy box.  If the IRS did not take money directly from your IRA, it is not a levy and does not qualify for the levy exception to the early distribution penalty.

It is extremely unusual for the levy exception to be correct on a Form 5329 because the payer would normally use code 2 to report a levy that occurred before you 59½, eliminating the need to report the levy exception yourself.