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Entering early distributions from Form 1099R in ProConnect Tax

by Intuit Updated 6 months ago

This article shows you how to enter an early distribution exception from Form 1099R.

What's new for Form 5329 for tax year 2023:

  • Certain corrective distributions not subject to 10% early distribution tax. Beginning on December 29, 2022, the 10% additional tax on early distributions will not apply to a corrective IRA distribution, which consists of an excessive contribution (a contribution greater than the IRA contribution limit) and any earnings allocable to the excessive contribution, as long as the corrective distribution is made on or before the due date (including extensions) of the income tax return
  • Qualified disaster distributions. The additional tax on early distributions doesn't apply to qualified disaster distributions nor does it apply to qualified disaster recovery distributions. See Publication 590-B for more details.
  • Maximum age for traditional IRA contributions. The age restrictions for contributions to a traditional IRA has been eliminated.

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To enter an early distribution exception from Form 1099R:

  1. Under Input Return, select Income.
  2. Select Pensions, IRAs (1099R).
  3. Select the Details button.
  4. Select the Form 5329 tab.
  5. Under 5329 (Part 1), enter the amount that isn't subject to 10%/25% tax in the Amount excluded from 10%/25% tax field.
ProConnect Tax

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