TP is over 60 years, but the Proseries softwares calculates 10% penatly on the tax return. No is marked for form 5329
CODE 1
Even for TP over 72 years its calculating 10% penalties with code 1, which I think is not correct.
Have your client make contact with the issuer of the 1099 since they have used the wrong code.
Another Former All Star
He could be 60 today but under 59 1/2 when he withdrew funds in early 2021. What was the date of the distribution, and how old was he at that time?
DOB is 1958 and code 1 reported on Form 1099-R.
The IRA trustee probably doesn't have the DOB. Box 7 should be Code 7 or Code 4.
On the 5329 isn't one of the exceptions to the penalty "Code 1 was an error", or something to that effect?
"10% penalty on early withdrawal of IRA"
Which type of account is this from? For instance, Roth and SIMPLE IRA have other rules regarding timeframes, not age.
Code L, Other
