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April 14, 2024
Question

Why is the distribution code on my 1099-R a 1 for early distribution, when my banker said because I was over 59 1/2 years old, there would be no penalty?

  • April 14, 2024
  • 1 reply
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1 reply

DoninGA
Employee
April 14, 2024

If you were age 59 1/2 or older when the funds were distributed then the code in box 7 is incorrect.  You will need to get a corrected Form 1099-R from the payer.

Employee
April 14, 2024

You can also claim on line 2 of Form 5329 a code 12 exception to the penalty, but I suspect that this can't be done in the free version of TurboTax without upgrading to a paid version.