Level 3

Taxpayer received a Form 1099-R showing a distribution from his Roth IRA for the year. He is under age 59 1/2.

My ProSeries Basic program taxed that amount less the basis in the IRA as a Non-Qualified Distribution and also calculated a 10% penalty.

Is this correct?

 

Labels (1)
0 Cheers
Level 15

Sounds about right.

This week's special - free roadrunner dinner with every return (legal disclaimer - you catch it and we'll cook it)
Level 10

Any chance your client qualifies for one of the exceptions to the 10% penalty?