In order for a retirement distribution to wave the early distribution penalty, does it has to have a specific code related to coronavirus in box 7?

[ayalastaxes]

I have a client that is trying to see if he qualifies to wave the early distribution penalty, but has a distribution code 1 in box 7.

[Just-Lisa-Now-]

Covid distributions get reported on Form 8915-E which wont be available until next week.

[ayalastaxes]

Hi Lisa, Thanks for the response. So no other/extra code is needed, just enter it in the area correspondent to that 8915-E.

[itonewbie]

@ayalastaxes  You may refer to this article for detailed instructions:

https://proconnect.intuit.com/community/form-1099-r/help/how-to-enter-coronavirus-related-retirement...

[qbteachmt]

"So no other/extra code is needed"

Form 5329, 8915-E, and the list of reasons is at the IRS:

https://www.irs.gov/newsroom/coronavirus-related-relief-for-retirement-plans-and-iras-questions-and-...

Since the reason for withdrawal is a "self-certified" process, not all distributions are already identified as Qualified. It's being left up to the tax payer to confirm it is a qualified distribution.