Level 3

Question

10% early withdrawal waived

Forum|Forum|5 years ago
February 3, 2021
31 replies
108 views

My 50 yr old client took money out of his IRA in 2020. The code was 1 so the software generated the 10% penalty. Aren't 2020 withdrawals supposed to be penalty free? How do I undo the penalty?

ProSeries Basic

This topic has been closed for replies.

IRonMaN

Level 15

Did he take it out because of COVID related issues or because he wanted to by an awesome new moped?

Slava Ukraini!

qbteachmt

Level 15

@IRonMaN

That may be the best question of the day.

Don't yell at us; we're volunteers

IRonMaN

Level 15

Just for the day? I'll have to try harder tomorrow. 😬

Slava Ukraini!

A

Accutax_Rick

Level 2

But what's the answer? I've had the same problem. Is there any response?

T

Terry53029

Intuit Community Champion

@callmefreud If it is covid related, scroll down on the 1099r worksheet to the section on Qualified disaster section

A

Accutax_Rick

Level 2

I doesn't work. i tried it and it didn't make any difference.

IRonMaN

Level 15

Go to form 5329 and use "other" as the exception.

Slava Ukraini!

V

vbburrowes

Level 2

Were you able find the answer to your question regarding the waiver of the 10% early withdrawal penalty in the proseries?

qbteachmt

Level 15

@vbburrowes

Here is your Help article:

https://proconnect.intuit.com/community/individual/help/proseries-form-1099-r-faq-s/00/4853

It's all in the 1099-R worksheet, including the indication that this is a disaster distribution.

Don't yell at us; we're volunteers

V

vmtowers

Level 2

If withdrawal was Corona Virus related,

select Box showing that it is Corona Virus Related in Form 1099R worksheet.

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