Box 2A, Box 7 on CSA 1099R

[rjgrimes]

Two questions on my CSA 1099R:

First, in Box 2A, I have "unknown", and TURBOTAX wants a number. I saw a discussion last year about this, and people were told to answer "no" to a question about "is the amount the taxable amount", but I'm not getting this question. What am I doing wrong?

Second, in box 7, what I have on my form is 2-NONDISABILITY. On TURBOTAX, "2" is listed as "Early distribution, exception applies." Is this more or less the same thing? I don't want to be subject to some sort of early withdrawal penalty.

Thanks!

[MarilynG1]

You did not indicate that you had a 'CSA 1099-R' rather than a regular '1099-R'.

Go back to this section to make the change.  Type '1099r' in the Search area, then click on 'Jump to 1099r'.

If your Box 2a has no amount, leave it blank in TurboTax, too.

Click the link for more info on CSA 1099-R.

[rjgrimes]

No, I marked the CSA. I played around a bit and figured out how to get the "taxable income question" (I had to tell it that I received regular payments, rather than one-time), but I still have the question on Box 7. The drop down available in TurboTax doesn't match what is on my form.

[MarilynG1]

Glad you worked out the 'regular paymentsj' solution.

A 2 in Box 7 does represent Early Distribution; however, it also indicates that an Exception Applies to the Penalty for Early Withdrawal.

Carefully answer the follow-up questions after entering your CSA 1099-R.

Here are the most common exceptions to the Early Withdrawal Penalty (before age 59.5) as outlined by @SuperHal_Al:

1. Rollovers to another IRA (no tax due)
2. Disability
3. Medical costs exceeding 10% (7-1/2% if over age 65) of AGI
4. Separation from service at age 55 or older (pensions & 401K but not IRAs)
5. Substantially equal periodic payments(SEPP)
6. Military reservist called to active duty
7. Public safety employees separated after age 50
8. IRS levy
9. Education expenses (Only IRAs; not available for withdrawals from 401k plans)
10. Court ordered spousal payments
11. First time home buyer (Only IRAs; not available for withdrawals from 401k plans)
12. Beneficiary
13. Unemployed Medical Insurance
14. Age 59-1/2

15. See the instructions for form 5329,for some other obscure exceptions http://www.irs.gov/pub/irs-pdf/i5329.pdf

*exceptions to the tax on distributions: roll overs, charitable contributions  by someone over age 70-1/2 and once-in-a-lifetime IRA to HSA transfers.