Solved: Received 1099-R due to my Moms death Box 7 show number 1 early distribution when it should be numer 4. Are they another form I can use to prevent 10% penalty
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eechler
New Member

Received 1099-R due to my Moms death Box 7 show number 1 early distribution when it should be numer 4. Are they another form I can use to prevent 10% penalty

Do I need to get a corrected 1099-R. 

I thought I saw another form to fill out to correct this mistake.

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Accepted Solutions
LisaBr
New Member

Received 1099-R due to my Moms death Box 7 show number 1 early distribution when it should be numer 4. Are they another form I can use to prevent 10% penalty

Your 1099-R, Box 7, must have code of 4, to claim the 10% death exception.

You will need to contact the firm that issued your 1099-R for a correction.

You will be taxed on the distribution but should be able to avoid the 10% penalty.

The following article from Fidelity is very beneficial for non-spouse inherits of retirement accounts:

https://www.fidelity.com/viewpoints/retirement/non-spouse-IRA

View solution in original post

1 Reply
LisaBr
New Member

Received 1099-R due to my Moms death Box 7 show number 1 early distribution when it should be numer 4. Are they another form I can use to prevent 10% penalty

Your 1099-R, Box 7, must have code of 4, to claim the 10% death exception.

You will need to contact the firm that issued your 1099-R for a correction.

You will be taxed on the distribution but should be able to avoid the 10% penalty.

The following article from Fidelity is very beneficial for non-spouse inherits of retirement accounts:

https://www.fidelity.com/viewpoints/retirement/non-spouse-IRA

View solution in original post

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