TurboTax did not add Form 5329 for my 401(k) early withdrawal.

Forum|Forum|1 year ago
May 9, 2024
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I made an early withdrawal on my 401(k) in 2023 which produced a 1099-R. I uploaded this to TurboTax and answered all of the questions. I know that I am subject to the 10% tax penalty for an early distribution and I do not qualify for any exceptions, so a Form 5329 should have been attached to my tax return to reflect the penalty owed to the IRS. TurboTax did not add this form. How do I amend my tax return to get this added? TurboTax wont let me add Form 5329 outright. I tried to amend my return and double checked the questions that I answered about my 1099-R for the early distribution, but nothing seems to prompt TurboTax to produce a Form 5329 with my tax return. I have been on the phone with them for an hour trying to get this resolved and they will not let me upgrade to the version that allows me to talk to a tax expert (I used the file yourself version). Anyone else have this problem?

401K

DoninGA

Employee

After you completed entry of the Form 1099-R and you had a 10% early withdrawal penalty for the 401(k), you would have come to a screen asking you to enter an exception to the penalty. If you did not enter an exception then there would not be a Form 5329 included in your tax return.

Did you have an exception as described in this IRS Tax Topic - https://www.irs.gov/taxtopics/tc558

tklein1668Author

I did not qualify for any of the exceptions. The software did not produce the Form 5329. It did ask if I rolled over or converted any of this money, I marked that as 'no'. I assumed these were talking about converting it to roth or rolling over to a different retirement plan. That is the only question they asked that I was not 100% sure about. Either way, it did not produce a Form 5329. My distribution code is 1B if that helps.