1099R with code 2 in box 7

Forum|Forum|3 years ago
November 3, 2022
2 replies
17 views

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?

ProSeries Professional

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sjrcpa

Level 15

Did you look up what Code 2 means?

The more I know the more I don’t know.

E

EricERJAuthor

Level 2

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.

IRonMaN

Level 15

"exception applies" 🤔 🤔🤔 🤔🤔 🤔

Slava Ukraini!

Just-Lisa-Now-

Intuit Community Champion

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♥¸¸.•*¨*•♫♪