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Box 7 form 1099 R Code 2 exception Applies what is the exception ?

L Henry
Level 1
 
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5 Comments 5
IRonMaN
Level 15

I think that is the question you are supposed to ask your client.


Slava Ukraini!
George4Tacks
Level 15

That means there is no penalty for early withdrawal.

Input the 2 and be done with that portion of the return.


Answers are easy. Questions are hard!
IRonMaN
Level 15

But come on George, I wanted to find out what the exception was 😜


Slava Ukraini!
Just-Lisa-Now-
Level 15
Level 15

It means they were under 59 1/2 years old, but no early penalty applies.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
qbteachmt
Level 15

Here's a reference article that might be helpful:

https://thelink.ascensus.com/articles/2020/12/16/irs-form-1099-r-box-7-distribution-codes

 

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