qbteachmt -

There is no penalty as it is not an early distribution. Nothing in my question has to do with a penalty. It's all about how to fill out the form correctly. PS does not fill out the 8915-E correctly. Column a is supposed to be the TOTAL distribution reported on the 1099-R (95,000). He only wants to defer 50,000 over the 3 years. $45,000 + $16,667 to be reported in 2020.

Has nothing to do with a penalty and PS is not calculating one. No 5329 required.

Taxpayer is 64 years old.