topic 2 1099-R forms with 2 codes in box 7 in Retirement tax questions

2 1099-R forms with 2 codes in box 7

knight500 — Thu, 19 Mar 2020 22:08:45 GMT

I received two 1099-R's with a code 2 on one and code 7 on another. I called the company in charge of my pension and they said the code 7 on one statement is because of my age. The pension distribution is considered early retirement before age 59 1/2 then considered normal distribution after that. So one form is for early retirement (code 2) and the other is for normal distribution (code 7). When I get to the point of reviewing my federal return, Turbo Tax is telling me the form marked with code 7 is inappropriate and needs to be corrected or removed.

I'm at a loss and don't know what to do at this point. The codes are correct as far as the payer is concerned but not Turbo Tax. How do I resolve this issue?

Thanks for any input.

Re: 2 1099-R forms with 2 codes in box 7

JamesG1 — Thu, 19 Mar 2020 22:25:06 GMT

Do any of the 1099-R's have "Corrected" marked at the top of the form?

Is the 1099-R with code 7 in box 7 "corrected" by a subsequent 1099-R with code 2 in box 7?

Are the numbers in box 1 the same on each form?

Perhaps the 1099-R with code 7 was corrected by a 1099-R with code 2. In that case, the 1099-R with code 7 should be ignored.

Re: 2 1099-R forms with 2 codes in box 7

dmertz — Thu, 19 Mar 2020 23:55:28 GMT

JamesG1, this not a case of a correction to a Form 1099-R. Question details indicate that the code 2 Form 1099-R correctly reports amounts distributed before reaching age 59½ and the code 7 Form 1099-R correctly reports amounts distributed after reaching age 59½.

knight500, make sure that you are entering these as two separate Forms 1099-R. These are not permitted to be combined into a single Form 1099-R. Putting code 2 and code 7 together will cause TurboTax to properly indicate an entry error with regard to the code selected in the second box 7 selection. A Form 1099-R can never have two numeric codes together.

Re: 2 1099-R forms with 2 codes in box 7

knight500 — Mon, 23 Mar 2020 19:54:44 GMT

dmertz you are correct in that the two 1099-R's were issued because I turned 59 1/2 during 2019.

Now as far as two codes being entered for the same form? I'll have to go back and double check this. Maybe this is a user error. Thanks for pointing this out.