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My client was issued a 1099R with code 2 in box 7. The program does not calculate the 10% penalty for early withdrawal. Is there a way to get the program to calculate this penalty or should there even be a penalty with code 2 in box 7?
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It is an early distribution (except Roth IRA) exception applies.
Code 1 in the same box triggers the additional 10% penalty but code 2 does not.
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I hope youve signed up for some continuing education for the upcoming tax year!
I realize we all start somewhere, but this is really a very basic Tax 101 situation.
Any tax professional should be familiar with the codes shown on W2s in Box 12 or 1099Rs in Box 7 or at the very least know how to research what they mean.
♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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Re-read @Just-Lisa-Now- answer caefully and look at @IRonMaN emoji!!
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