topic IRA emmergency distribution exceeding 2018 normal RMD amount. in Retirement tax questions

IRA emmergency distribution exceeding 2018 normal RMD amount.

BobDesro — Fri, 04 Oct 2019 12:47:48 GMT

Last year I had to replace the entire roof on my primary residence at a cost of $38,181.96 which was not covered by insurance as the fault of builder who is out of business (home built in 1994). I had to take an excess/early IRA distribution to meet this need. Can the 10% additional tax penalty be waived in my situation? I am now 81 years old and have been going through a hardship with a disabled ill daughter. The roof situation was exacerbated by numerous FL tropical storms.

Re: IRA emmergency distribution exceeding 2018 normal RMD amount.

DoninGA — Fri, 04 Oct 2019 12:52:31 GMT

Repairs to your personal residence is not an exception to the 10% early withdrawal penalty.

However, since you are over the age of 59 1/2 there is no early withdrawal penalty assessed on your withdrawals from an IRA.

Re: IRA emmergency distribution exceeding 2018 normal RMD amount.

dmertz — Fri, 04 Oct 2019 15:17:44 GMT

In other words, this is not an early distribution. It is simply a regular distribution beyond the amount that you were required to take for the year.

If TurboTax is calculating an early-distribution penalty on Form 5329, you've entered something incorrectly. The Form 1099-R should not have a code 1 or code J in box 7 (which is what triggers TurboTax to calculate a penalty) since you are over age 59½.