Level 3

Form 1099-R box 5

Forum|Forum|5 years ago
January 26, 2021
1 reply
17 views

Hello, client provided a 1099-R for 2019 with an amount in box 5. Is the amount on that box subject to the early withdrawal penalty? The box 5 is the difference between boxes 1 and 2a. Thank you!

This topic has been closed for replies.

Just-Lisa-Now-

Intuit Community Champion

Box 5 is what they contributed, thats why Box 2a is lower than box 1.

Just enter the 1099R int the worksheet as its shown.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

F

FranchescaAuthor

Level 3

Thank you. I entered the 1099-R as its shown, however, the system is only assessing the 10% penalty based on the amount reported on box 2a (taxable amount), which is the difference between Box 1 (Gross Distribution) and Box 5. The form shows Code 1D in box 7. Would that mean that the plan administrator is reporting a non-taxable amount of the distribution in box 5? My first thought was that since Code 1D was shown of Box 7, the full distribution would be taxable as an early distribution since the customer has not reached age 59 1/2 and subject to the 10% penalty. Would you agree with this?

Just-Lisa-Now-

Intuit Community Champion

Yes, only the taxable amount would be considered an early withdrawal.

The portion they contributed (Box 5) would be non taxable (it was their own after tax money) and not subject to penalty.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

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