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posted Jun 1, 2019 12:07:36 AM

Should I re-code form 1099-r box 7 to 2 instead of 1 since I have a SEPP and I'm getting charged a 10% penalty incorrectly?

I retired after turning 55 in 2015 but I'm under 59 1/2, but understood that with rule 72(t) I could set up a SEPP  and not incur the 10% penalty

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1 Best answer
Level 15
Jun 1, 2019 12:07:37 AM

There is no need for a corrected Form 1099-R.  In the follow-up after clicking the Continue button on the Your 1099-R Entries page, enter the amount of these distributions into the Equal Periodic Payments box and TurboTax will report them on Form 5329 as qualifying for the SEPP exception to the early distribution penalty.

2 Replies
Level 15
Jun 1, 2019 12:07:37 AM

There is no need for a corrected Form 1099-R.  In the follow-up after clicking the Continue button on the Your 1099-R Entries page, enter the amount of these distributions into the Equal Periodic Payments box and TurboTax will report them on Form 5329 as qualifying for the SEPP exception to the early distribution penalty.

Level 3
Jun 1, 2019 12:07:38 AM

Thanks dmertz!