topic Re: 1099Rs in Retirement tax questions

1099Rs

jrpolson — Tue, 02 Feb 2021 19:44:17 GMT

I am 78 years old, I received a 1099R that with a 1 in in Box 7. (early distribution). TurboTax is adding the 10% penalty, I don't think this is correct because of my age. Please Help

Re: 1099Rs

SamS1 — Tue, 02 Feb 2021 20:38:02 GMT

You should contact who ever issued the 1099R if you think there is a mistake. The code "1" is issued if the distribution was made to a recipient under the age of 59 1/2. Check the social security number on the 1099R to make sure it is yours. If you have someone living with you, its possible a c/o address was used and your name is populating the name field. Check the social security number and it that was correct, I would contact the provider of the 1099R to get the coding changed to "7".

If this represents a Roth IRA and you have not had the funds in 5 years, that may be causing the coding of 1. Talk to who provided you the form to find out more.

Re: 1099Rs

dmertz — Wed, 03 Feb 2021 01:42:55 GMT

If the Form 1099-R has indeed been issued to you and for some inexplicable reason the payer will not make the correction, you can report the Form 1099-R as is and claim an Other reason exception to the early distribution penalty on the taxable amount of this distribution.

Code 1 is never permitted to be used to report a distribution from a Roth IRA. A Form 1099-R issued to an individual who is age 78 and the payer does not know if the individual has had a Roth IRA for 5 years, the payer must use code T.