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Because the code on form RRB-1099-R is 1, proseries is putting the early withdraw penalty of 10%. The client is 65 years old.
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Where do you see a code on a RRB1099R? Im looking at 2 different clients RRB1099R forms and I don't see any distribution code like a regular 1099R.
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Hi Lisa. My First RRB 1099. There is a payee code Next to claim # which is a 1. That doesn't make sense. 7 makes sense like you suggested but can you enter a 7 without it showing on form?
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Proseries also put a 10% penalty. Code 1 every year triggers it. I thought of changing it to 7 myself, or using Form 5329. I have no idea why the Code is a 1!!
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That number is not a distribution code. Read the back of the form, very bottom. It states "any amounts shown on your form RRB1099-r are considered "normal" distribution...Use distribution code 7 if you are asked for a code.