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March 3, 2024
Question

Military Pension being charged early withdrawal penalty.

  • March 3, 2024
  • 1 reply
  • 0 views

My husband and I have the desktop version.  When finished entering the 1099-R, and pressing the non-qualified button, the expected screen does not appear.  Usually, the next screen asks you to identify the non-qualified plan.  This year it goes to the Yes/No screen and asks are you taking payments before 59 1/2.  And then it tacks on another $1000 in owed taxes, making total owed taxes $3550.  On $7000+ taxable income.  Seriously?  You have a coding issue you need to fix.  The incorrect hyperlink from the non-qualified button needs to be fixed.

1 reply

DoninGA
Employee
March 3, 2024

Pensions are not eligible for an early withdrawal penalty unless for some reason there is an incorrect code in box 7 of the Form 1099-R that you entered.  What is the code in box 7 of the Form 1099-R?

March 3, 2024

I understand that.  It is Code 7.  It is a programming issue.  

DoninGA
Employee
March 3, 2024

A code of 7 is a normal distribution.  Delete the Form 1099-R and then re-enter manually to clear this problem.