I have a new client who changed jobs, opted to rollover her IRA, took the IRA distribution in the form of a check made out to her, then did not deposit it in a new IRA/retirement plan within the 60 day window.  She does not qualify for any of the exceptions.  She spent the money.

Previous employer issued her a 1099-R with Code G in Box 7.  I wanted to clarify that I am "breaking" the 1099-R correctly.  Let's say she was distributed $50,000:

1. I entered the $50,000 in Box 2a (taxable amount) instead of the blank that the form showed.

2. Instead of Code G, I entered Code 1 in Box 7.  

This seems to have correctly calculated both the tax on the distribution itself AND the early withdrawal penalty.

I alternatively played around with the "Early distribution .... but no code 1" box but it did not seem to calculate the early penalty AND it created an unfixable error in Box 7.

I appreciate any help, I get nervous the first time I try to back door solutions in ProSeries.