Force Turbotax to add Form 5329?

Forum|Forum|1 year ago
February 26, 2025
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IRS instructions require form 5329 where the 1099-R distribution code is incorrect. Pursuant to instructions, I corrected the code on the 1099-R entered into Turbotax but it will not let me populate Form 5329 so that I can indicate the exception code for an early distribution taken due to terminal illness. Plan administrators refuse to issue correct 1099-Rs.

BillM223

If you corrected the distribution code, TurboTax probably doesn't see any reason to create a 5329.

The likely consequence (I don't know how likely) is that the IRS notices that you changed the distribution code on the 1099-R from the copy that they got, and so they may send you a letter asking about it.

In this case, you will respond that the distribution code was inappropriate but the administrator refused to correct it, so you had to do this workaround.

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