1099R with code 2 in box 7

[EricERJ]

My client was issued a 1099R with code 2 in box 7. The program does not calculate the 10% penalty for early withdrawal. Is there a way to get the program to calculate this penalty or should there even be a penalty with code 2 in box 7?

[sjrcpa]

Did you look up what Code 2 means?

[EricERJ]

It is an early distribution (except Roth IRA) exception applies.

Code 1 in the same box triggers the additional 10% penalty but code 2 does not.

[IRonMaN]

"exception applies" 🤔🤔🤔

[Just-Lisa-Now-]

I hope youve signed up for some continuing education for the upcoming tax year!

I realize we all start somewhere, but this is really a very basic Tax 101 situation.

Any tax professional should be familiar with the codes shown on W2s in Box 12 or 1099Rs in Box 7 or at the very least know how to research what they mean.

[Autumn]

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[Camp1040]

Re-read @Just-Lisa-Now-  answer caefully and look at @IRonMaN emoji!!

[Autumn]

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