topic Re: 1099 R in Retirement tax questions

1099 R

PG1429 — Mon, 07 Feb 2022 20:02:06 GMT

I received a 1099 R that showed Code 1 for the distribution in Box 7. This was for a settlement from a pension fund. I am over 59 1/2 so didn't think I should be charged the early withdrawal penalty. How do I do this?

Re: 1099 R

ColeenD3 — Mon, 07 Feb 2022 20:30:37 GMT

Yes, the code in Box 7 should not be Code 1 if you are over age 59 1/2. You should contact the issuer of the form and request a corrected version. You can't change the code yourself. You must enter the form exactly as it appears.

Re: 1099 R

dmertz — Mon, 07 Feb 2022 20:37:51 GMT

If the issuer will not correct the code on the Form 1099-R, you can claim an Other reason exception to the early-distribution penalty (the "other reason" being that you were over age 59½ at the time of the distribution, one of the reasons listed in the instructions for using code 12 on line 2 of Form 5329).