Distribution From a Qualified Retirement Plan-Exce...
Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
nabugman
Level 1

Distribution From a Qualified Retirement Plan-Exception

If I am exempted from paying tax on early distribution from a qualified retirement plan. how do I enter that in Turbo Tax?

3 Replies
JulieS
Expert Alumni

Distribution From a Qualified Retirement Plan-Exception

On your 1099-R form, the amount that is taxable is listed in box 2. If that amount is wrong, you may need to get your 1099-R form corrected by the company that sent it to you. 

 

The code in box 7, indicates your tax status for this distribution. For an early distribution, you will get  1 or 2. Code 2 means, that a penalty exception applies. 

 

After you enter the 1099-R information in Turbo Tax, you will see a screen telling you that you are paying extra tax on this distribution. After that, they run some of the exceptions to the early withdrawal penalty. Be patient because there are a lot of questions.

 

Eventually, you will get back to a screen called Your 1099-R entries. Click Continue again and you be asked about all of the remaining exceptions to the penalty. 
 

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
nabugman
Level 1

Distribution From a Qualified Retirement Plan-Exception

Thanks for your reply.  Do I need to file the complete tax return, or just the form to amend the return?

 

KarenM90
Employee Tax Expert

Distribution From a Qualified Retirement Plan-Exception

If your return has already been filed and accepted (or still shows pending) you will need to amend your tax return.

 

Here is a TurboTax Article on Amending your tax return.  If this is necessary you will only change that area of the return that pertains to your 1099R entry: Amending my Tax Return

 

If you have not filed yet, you can just go back through the screens as outlined in JulieS answer below:  

 

On your 1099-R form, the amount that is taxable is listed in box 2. If that amount is wrong, you may need to get your 1099-R form corrected by the company that sent it to you. 

 

The code in box 7, indicates your tax status for this distribution. For an early distribution, you will get  1 or 2. Code 2 means, that a penalty exception applies. 

 

After you enter the 1099-R information in Turbo Tax, you will see a screen telling you that you are paying extra tax on this distribution. After that, they run some of the exceptions to the early withdrawal penalty. Be patient because there are a lot of questions.

 

Eventually, you will get back to a screen called Your 1099-R entries. Click Continue again and you be asked about all of the remaining exceptions to the penalty. 

 

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
Dynamic AdsDynamic Ads
v
Privacy Settings