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

 
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2 Replies
ErnieS0
Expert Alumni

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

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

delete the 1099-R and try again.

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

 

@petercurry 

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