holodeck
Level 3
‎04-04-2022 12:13 PM

The software automatically calculated 10% penalty on Sch 2 line 8 with "No" for form 5329 which I don't understand.

An entry on the 5329 smart worksheet line 1L is still required to eliminate the 10% for taxpayer over 59-1/2.

The distribution is from a company discontinued pension plan.

Just want to be sure I'm right.

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Just-Lisa-Now-
Level 15
Level 15
‎04-04-2022 12:19 PM

Open form 5329 and enter the amount in the smart worksheet box exception L below Line 1.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
holodeck
Level 3
‎04-04-2022 03:15 PM

Thank you so much for taking the time to respond.  I was just puzzled why the software would automatically calculate the penalty and then enter "No".  Thanks again.

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Just-Lisa-Now-
Level 15
Level 15
‎04-04-2022 03:25 PM
It put NO, because just having a 1 in Box 7 doesn't trigger a requirement for 5329, it just computes the penalty and puts in on the line. In this situation, you need the 5329 to get rid of that penalty due to the wrong code in Box 7.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

View solution in original post

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holodeck
Level 3
‎04-04-2022 05:14 PM

You're a peach!

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