If you want to waive the penalty go to Form 5329 Part I, enter the amount of the distribution on Line L, that reads Other: and you will see that the software will place code 12 on Line 2 waiving the 10 % penalty. I am expecting that that is what it is going to happen when they update the program in mid february, if you look at Form 1099R they already have the checkbox for Coranavirus Related Distribution, if you check it now, an alert will pop up saying it needs updates, but I expect that once is updated when you check it, the amount of the distribution will flow to Others, and code 12 will be placed on Line 2 of form 5329. I hope it helps. Thank you.
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