topic Re: Qualified Distribution- Birth in Retirement tax questions

Qualified Distribution- Birth

cem4 — Tue, 04 Feb 2025 20:38:57 GMT

How do I report a qualified distribution about birth on my 1099-R? I do not see that as an option when filling out the 1099-R.

How do I "attach a statement that provides the name, age, and TIN of the child or eligible adoptee" as required by the IRS?

The only options are 1. Qualified Disaster. 2. Inheritance. 3. SEP IRA 3. Moved to HSA 4. File substitute 1099-R 5. Corrected bix is checked on this 1099-R. 5. None of these apply

Re: Qualified Distribution- Birth

RobertB4444 — Tue, 04 Feb 2025 21:20:30 GMT

Select none of these apply. You're going to enter the 1099-R as a fully taxable event. Then, after you have done that, the system will offer you a complete list of possible exceptions. The birth/adoption exception is a little more than midway down that list and will exempt up to $5,000 from the 10% early withdrawal penalty. Then in order to attach the necessary statement, you will have to mail in the return.

@cem4

Re: Qualified Distribution- Birth

Jswain34 — Fri, 27 Feb 2026 15:25:48 GMT

I am having the same issue. Im still not seeing a qualified birth/adoption option anywhere on the list of qualified exceptions.

Re: Qualified Distribution- Birth

RogerD1 — Fri, 27 Feb 2026 21:54:25 GMT

Qualified birth and adoption expenses up to $5000 can qualify for an exception to the 10% early distribution penalty. These expenses must be incurred within 1 year of the birth or adoption. Your 1099-R would have a code 1 in box 7 if the penalty applies.

After you enter your 1099-R in, you will soon come to a screen saying "Let's see if we can lower your tax bill." Click Continue, then click the pencil icon to edit the penalty exception on the next screen. About halfway down the list, you will see "Qualified birth or adoption distributions" where you can enter the amount of those expenses there not to exceed the lesser of $5000 or the amount of the distribution.