Proseries calculates 10% penalty on early withdrawal of IRA for person over 60 years.

[Manager]

TP is over 60 years, but the Proseries softwares calculates 10% penatly on the tax return.  No is marked for form 5329

[Just-Lisa-Now-]

whats the code in Box 7 of the 1099R?

[Manager]

CODE 1

[Manager]

Even for TP over 72 years its calculating 10% penalties with code 1, which I think is not correct.

[poolcleaner]

Have your client make contact with the issuer of the 1099 since they have used the wrong code.

Another Former All Star

[BobKamman]

He could be 60 today but under 59 1/2 when he withdrew funds in early 2021.  What was the date of the distribution, and how old was he at that time?

[Manager]

DOB is 1958 and code 1 reported on Form 1099-R. 

[BobKamman]

The IRA trustee probably doesn't have the DOB.  Box 7 should be Code 7 or Code 4.  

[sjrcpa]

On the 5329 isn't one of the exceptions to the penalty "Code 1 was an error", or something to that effect?

[qbteachmt]

"10% penalty on early withdrawal of IRA"

Which type of account is this from? For instance, Roth and SIMPLE IRA have other rules regarding timeframes, not age.

[Jim-from-Ohio]

Code L, Other