Hi all

Client receives 1099-R for $5k code 1 in box 7. Client is 55. Have entered basis of $4,800 from 2022 as no deduction was taken.

Proseries flows the $200 through to 1040 as taxable. No additional tax or 10% penalty. Does this sound correct? I can understand post tax in, post tax out, but thought code 1 for younger than 59 1/2 would charge the penalty.

Any help much appreciated

Nolan