penalty waiver

Forum|Forum|5 years ago
February 4, 2021
3 replies
28 views

Where is the penalty waiver recorded for an early withdrawal from an IRA in 2020 ?

They wish to pay the tax on the entire amount on the 2020 return.

Would it be on form 5329 code L?

ProSeries Professional

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Just-Lisa-Now-

Intuit Community Champion

IRS instructions say that Covid retirement distributions need to use Form 8915E, if you scroll down the 1099R worksheet you'll see the Covid section...I dont have the excerpt of the instructions at my fingertips, but there have been several threads on this in the past 24 hours.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

A

athaureaux6

Level 7

Yes go to Form 5329. write the amount of the distribution on Line L and the software will transfer code 12 to Line 2 waiving the penalty. If you look at the instructions of the Form for 2020, code 12 includes Coranavirus Related Distributions and they waive the penalty this year.

K

KCash77

Level 3

Just to clarify, by using Form 8915E, Form 5329 and Code L wouldn't even be needed, would it?

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