72T Question
Hello,
Has there been any guidance provided on why 72T distributions are reported with a code 1 on the 1099R form? Thank you.
Hello,
Has there been any guidance provided on why 72T distributions are reported with a code 1 on the 1099R form? Thank you.
Permalink Submitted by Alan - IRA critic on Tue, 2018-11-20 17:56
Very few IRA custodians now attempt to “underwrite” the accuracy of a 72t calculation since the applicable guidelines have evolved through several letter rulings and tax court decisions which are not part of the tax code. Therefore the custodians choose to play it safe and force the IRA owner to claim their own penatly exception by filing Form 5329 and showing exception code 02 to override the Code 1. I doubt that the IRS has told them to use Code 1, they just do not want to do the work to investigate the accuracy of all the calculations.