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IRA under 59 1/2 waiver of penalty

Level 3

Couple took an early distribution on their IRA for 2020. I have been told there should be no penalty.  The distribution code is 1.  How do you get the penalty waived if affected by Covid-19

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Level 10
Level 10

on the 1099-R, scroll down to the QUALIFIED DISASTER DISTRIBUTION SMART WORKSHEET, and click on the 2020 coronavirus box and the one below it, entire amount. Then go to the 5329-T, scroll down to the Distributions Not Subject to Additional Tax smart worksheet, and on line 11, enter the amount.  Before leaving that page, make sure that Line 2 has code 12 in it, and the amount. Then go to the 8915-E,  and at the bottom of Part 1, make sure the 3-year question is marked the way you want. 

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Level 15

"Couple took an early distribution on their IRA for 2020."

There is only Account Owner. Not "couple." The one person is who you are working on; or two separate accounts, one for each Owner. No one jointly owns IRA accounts.

Here are the articles:





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