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

Manager
Level 1

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

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10 Comments 10
Just-Lisa-Now-
Level 15
Level 15
whats the code in Box 7 of the 1099R?

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
Manager
Level 1

CODE 1

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Manager
Level 1

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

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poolcleaner
Level 9

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

 

 

Another Former All Star

BobKamman
Level 15

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
Level 1

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

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BobKamman
Level 15

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

sjrcpa
Level 15

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

The more I know, the more I don't know.
qbteachmt
Level 15

"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.

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Jim-from-Ohio
Level 11

Code L, Other 

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