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.

delete the 1099-R and try again.

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

 

@petercurry