topic Distribution From a Qualified Retirement Plan-Exception in Deductions & credits

Distribution From a Qualified Retirement Plan-Exception

nabugman — Wed, 05 Feb 2020 16:24:54 GMT

If I am exempted from paying tax on early distribution from a qualified retirement plan. how do I enter that in Turbo Tax?

Re: Distribution From a Qualified Retirement Plan-Exception

JulieS — Wed, 05 Feb 2020 21:10:14 GMT

On your 1099-R form, the amount that is taxable is listed in box 2. If that amount is wrong, you may need to get your 1099-R form corrected by the company that sent it to you.

The code in box 7, indicates your tax status for this distribution. For an early distribution, you will get 1 or 2. Code 2 means, that a penalty exception applies.

After you enter the 1099-R information in Turbo Tax, you will see a screen telling you that you are paying extra tax on this distribution. After that, they run some of the exceptions to the early withdrawal penalty. Be patient because there are a lot of questions.

Eventually, you will get back to a screen called Your 1099-R entries. Click Continue again and you be asked about all of the remaining exceptions to the penalty.

Re: Distribution From a Qualified Retirement Plan-Exception

nabugman — Sat, 08 Feb 2020 21:33:30 GMT

Thanks for your reply. Do I need to file the complete tax return, or just the form to amend the return?

Re: Distribution From a Qualified Retirement Plan-Exception

KarenM90 — Sun, 09 Feb 2020 00:07:04 GMT

If your return has already been filed and accepted (or still shows pending) you will need to amend your tax return.

Here is a TurboTax Article on Amending your tax return. If this is necessary you will only change that area of the return that pertains to your 1099R entry: Amending my Tax Return

If you have not filed yet, you can just go back through the screens as outlined in JulieS answer below:

On your 1099-R form, the amount that is taxable is listed in box 2. If that amount is wrong, you may need to get your 1099-R form corrected by the company that sent it to you.

The code in box 7, indicates your tax status for this distribution. For an early distribution, you will get 1 or 2. Code 2 means, that a penalty exception applies.

Eventually, you will get back to a screen called Your 1099-R entries. Click Continue again and you be asked about all of the remaining exceptions to the penalty.