1099r codes L1

[gman]

when I enter L1 I get no penalty, but when I enter 1L, I get the penalty. It is L1 on the actual 1099. The fact that the 1 is on there leads me to believe the penalty should be added either way??? Is there a difference that the 1 is after or before the L ??

Thanks

[Bert73]

1099r Codes L1

Publication 575 helps me when I run into 1099r L1s. Page 17 states about the loan itself and page 14 or 16 helps you figure out the taxable amount/ and penalty.

The taxpayer might have to come up with other documents, showing their contribution to the plan. But I always tell them that a little digging through their papers at home could save them $$$