How do i file if 1099r if from a 401 K as to not get penalized because retired and disabled but under 59. they did list the full amount. in item 1 and 2a that was withdrtawn to close out. I just wanted to make sure i am not required an additional 10% penalty. How would I know? I dont see on 1099-R form?
Look at the code in box 7 of the Form `1099-R. If you are under age 59 1/2 the code should either be a 1 or a 2 in most cases. If you retired due to a disability the code will be a 3. All the codes are shown on the back of the Form 1099-R.
1—Early distribution, no known exception (in most cases, under age
59½).
2—Early distribution, exception applies (under age 59½).
3—Disability
If you retired due to a disability and you are under the minimum retirement age from your employer the distribution amount will be included on your Form 1040 on Line 1 as gross income. There is not an early distribution penalty if you retired as disabled.
After you enter the 1099-R continue thru that entire section and answer all the follow up questions.
Box 7 of the 1099-R determines the type of distribution your withdrawal was considered to be. The number 3 in box 7 is for "disability.". If that is in the box, you are not subject to the 10% early distribution penalty. For more information on the matter, please follow the link. 1099-R codes in box 7