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February 14, 2025
Question

Why does a seemingly random amount appear as a "incorrect early distribution" on form 5329? I am well over 59.5 years

  • February 14, 2025
  • 2 replies
  • 0 views
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    2 replies

    February 14, 2025

    First, make sure your birthdate is correct in the Personal Info section.

     

    For a normal retirement distribution, you should see Code 7 in Box 7 of your 1099-R.

     

    If you're using TurboTax Online, clear your Cache and Cookies and return to the 1099-R entry area.

     

    If you imported your 1099-R, you may delete/re-enter manually.

     

    You can also Delete Form 5329; however it may regenerate if the 1099-R (or birthdate) are incorrectly entered. 

     

    Since we can't see your return in this forum, let us know if this resolved your issue.  You can also Contact TurboTax Support

    VolvoGirl
    Employee
    February 14, 2025

    Did you get a 1099R for something?  Are you old enough to need to take the RMD from your IRA or retirement accounts?   There is a bug in reporting the RMD and giving you a penalty on 5329.