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Level 3
February 9, 2021
Question

10% premature distribution penalty

  • February 9, 2021
  • 3 replies
  • 23 views

Taxpayer is not yet 59.5 years old.  Proseries is calculating the 10% penalty.  How do I indicate that as a result of the pandemic and CARES Act taxpayer is not subject to the premature penalty of 10%?

  Thank you.

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3 replies

IRonMaN
Level 15
February 9, 2021

Form 5329 - "other" exception.  But technically you are supposed to wait for form 8915E to be finalized before you can go that route.

Slava Ukraini!
Level 2
February 10, 2021

At the bottom of the 1099-R worksheet. You will have to wait until Feb 25 for the form to be ready. 

qbteachmt
Level 15
February 10, 2021