topic Re: Form 5329 error in Get your taxes done using TurboTax

Form 5329 error

mariecj — Wed, 11 Feb 2026 04:17:37 GMT

Form 5329 line 2 reports some of my 401K dividends with exception code #12, meaning that the income was wrongly indicated on the 1099-R as taxable because I'm over 59 1/2 years old. This code indicates the 1099-R uses code 1, J or S. However, none of these codes are on the relevant 1099-R (it is code "U") and none are entered in TurboTax (only code "U"). How can I let someone at TurboTax know about this error in their software? (I am over that age and not subject to the extra 10% penalty tax, but the dividends are taxable at the regular rate.)

Re: Form 5329 error

CatinaT1 — Mon, 12 Feb 2024 20:56:58 GMT

Many things have been corrected in the latest updates to TurboTax. Are you still experiencing this problem?

Make sure you have ran all updates.

If using TurboTax Online: Clear your cache and cookies. See this FAQ, for your particular browser.

If using TurboTax Desktop: Please see this FAQ.

Re: Form 5329 error

dmertz — Mon, 12 Feb 2024 23:01:59 GMT

It's interesting that I've only seen this bug mentioned with regard to 2023 TurboTax (several times) despite the bug having been introduced in 2012 TurboTax 11 years ago. (I researched this yesterday.)

This bug exists only in step-by-step mode of the CD/download version of TurboTax, so after completing the entry of the Code-U Form 1099-R you can simply delete the extraneous Form 5329. The code-12 entry on line 2 of Form 5329 will only reappear if you edit the Form 1099-R.

This bug only presents itself if the individual who received the distribution was over age 59½ during the tax year as indicated by the birthdate entered in Personal Info.

@CatinaT1 , please report this bug.