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Why is TurboTax not asking about a SEPP as for a situation that applies for early withdrawal of retirement?

 
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2 Replies
ThomasM125
Expert Alumni

Why is TurboTax not asking about a SEPP as for a situation that applies for early withdrawal of retirement?

The series of equal periodic payments (SEPP) is addressed in TurboTax. If you enter a Form 1099-R with a code of "1" in box 7, indicating an early withdrawal penalty, you will be asked later if you get periodic payments from the retirement plan on the screen that says Annuity Information. Later, on the screen that says These Situations may Lower Your Tax Bill, one of the options is to enter your distribution amount from Equal Periodic Payments. Entries on those screens will identify your distributions as SEPP and you won't be penalized on the early distributions.   

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Why is TurboTax not asking about a SEPP as for a situation that applies for early withdrawal of retirement?

1. After entering the details of the 1099, there is a pencil Edit Button. Click it.

2. On Identify the Plan, Check the IRA box.

3. On These situation may lower your tax bill, enter the amount of the Equal Periodic Payments in the first box.

4. Good News, your tax bill just got lower!

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