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In order for a retirement distribution to wave the early distribution penalty, does it has to have a specific code related to coronavirus in box 7?

Level 2
I have a client that is trying to see if he qualifies to wave the early distribution penalty, but has a distribution code 1 in box 7.
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Level 15
Level 15

Covid distributions get reported on Form 8915-E which wont be available until next week.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
Level 2

Hi Lisa, Thanks for the response. So no other/extra code is needed, just enter it in the area correspondent to that 8915-E.

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Level 15

@ayalastaxes  You may refer to this article for detailed instructions:

https://proconnect.intuit.com/community/form-1099-r/help/how-to-enter-coronavirus-related-retirement...

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Still an AllStar
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Level 15

"So no other/extra code is needed"

Form 5329, 8915-E, and the list of reasons is at the IRS:

https://www.irs.gov/newsroom/coronavirus-related-relief-for-retirement-plans-and-iras-questions-and-...

Since the reason for withdrawal is a "self-certified" process, not all distributions are already identified as Qualified. It's being left up to the tax payer to confirm it is a qualified distribution.

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