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Will the error On form 1099 R box 7 the (distribution code) of a 1 instead .of 7 cause me to pay more tax.
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Will the error On form 1099 R box 7 the (distribution code) of a 1 instead .of 7 cause me to pay more tax.
Since the age of 59 1/2 was reached before the Series of substantially equal periodic payments based on life expectancy were started why would the code be 1 and not 7 be entered from the beginning of the 1 St year payments were made?
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Will the error On form 1099 R box 7 the (distribution code) of a 1 instead .of 7 cause me to pay more tax.
You would have to ask the issuer of the 1099-R that question. Perhaps they have your age listed wrong or made an error. You can ask them for a corrected 1099-R or just use the penalty exception.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
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Will the error On form 1099 R box 7 the (distribution code) of a 1 instead .of 7 cause me to pay more tax.
BTW: The exception for being over age 59 1/2 is "other" on the exception screen - see the blue "explain this".
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
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Will the error On form 1099 R box 7 the (distribution code) of a 1 instead .of 7 cause me to pay more tax.
Yes, if you have a code 1 in Box 7 of your 1099-R instead of 7 (normal distribution), you may have to pay 10% early withdrawal penalty.
There are exceptions to the 10% tax penalty for early
distributions:
- Death, or total and permanent disability
- Series of substantially equal periodic payments based on life expectancy
- Qualified first-time homebuyer distributions up to $10,000
- Qualified higher education expenses
- Certain medical insurance premiums paid while unemployed
- Unreimbursed medical expenses that are more than a certain amount of your adjusted gross income
- IRS levy
- Certain distributions to qualified military reservists called to active duty
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Will the error On form 1099 R box 7 the (distribution code) of a 1 instead .of 7 cause me to pay more tax.
In addition, being over the age of 59 1/2 is also an exception. Not all of the above exceptions apply to a pension or employer plan.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
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