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10% early withdrawal penalty on retirement distributions

garyhartenbach
Level 1

How do you "apply" for not paying a 10% penalty on otherwise early withdrawals of retirement distributions in 2020 when the box 7 code on a 1099-R has a 1 marked & the withdrawal was Covid related pursuant to the CARES Act of March-2020?

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5 Replies 5
sjrcpa
Level 15

5329 Other exception.

Spoiler
A picture of a drunken troll would go well here.

 


ex-AllStar
abctax55
Level 15

LOL Susan... no work to do?  Or just already overwhelmed so turning to humor to cope?

Former Chump..umm... AllStar...This message was typed from 6 feet away so you can safely read it immediately.

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JRC
Level 5

My program isn't ready for it as of today. I have to wait for an update.

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Just-Lisa-Now-
Level 15
Level 15

If you scroll down the 1099R worksheet to the Covid section, you'll discover that the program isnt ready for these yet.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
athaureaux6
Level 7

You can go to Form 5329, look for Line L under Distributions not subject to additional tax, enter the amount of the distribution and you will see that PS will place code 12 on Line 2. dotted lines, that code includes the waiver of the Coranavirus Related Distributions this year. There will be another way soon they update the program in Form 1099R. But for now, you can waive there.