TT is adding the early withdrawal penalty (pension) when distribution code is 4, death. Isn't that not subject to the 20% penalty?

petercurry · ‎April 15, 2023

ErnieS0 · ‎April 15, 2023

There is no early withdrawal penalty when a pension distribution is received due to the death of the participant.

The early withdrawal penalty is 10%.

20% is the amount of federal tax withheld in Box 2a.

Any early withdrawal penalty would be on Form 1040. Schedule 2, line 8, which will transfer to Form 1040 line 23.

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fanfare · ‎April 15, 2023

delete the 1099-R and try again.

there is no penalty when you enter code "4".

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