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posted Jun 3, 2019 5:25:24 PM

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?

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1 Best answer
Level 15
Jun 3, 2019 5:25:25 PM

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.

1 Replies
Level 15
Jun 3, 2019 5:25:25 PM

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.