wethepeople
Level 3

Taxpayer received a Form 1099-R showing a distribution from his Roth IRA for the year. He is under age 59 1/2.

My ProSeries Basic program taxed that amount less the basis in the IRA as a Non-Qualified Distribution and also calculated a 10% penalty.

Is this correct?

 

0 Cheers
IRonMaN
Level 15

Sounds about right.


Slava Ukraini!
dkh
Level 15

Any chance your client qualifies for one of the exceptions to the 10% penalty?