topic 72t SEPP distribution in Retirement tax questions

72t SEPP distribution

KamC — Sat, 01 Feb 2025 23:46:05 GMT

I started taking an annual distribution from my IRA under 72t in 2024. I sent Fidelity the forms to take such a distribution.

When I import the files into TurboTax, it shows I owe the 10% penalty. How do I correct this? It doesn't specify that it is a 72t distribution, other than changing the code to 2 (line 7 from 1099R), which I am sure I shouldn't change.

Thanks

Re: 72t SEPP distribution

dmertz — Mon, 03 Feb 2025 05:04:12 GMT

Click the Continue button on the page that lists the Form 1099-R that you entered. TurboTax will offer the opportunity to claim the exception for a series of substantially equal periodic payments. Enter the amount in the box labeled for such payments and TurboTax will include this amount on line 2 of Form 5329 with the code 02 exception, eliminating the penalty on this amount.