1009R with code 1D in box 7

[tsuewalker]

My client is a 85 year old man who received a 1099R with the code 1D in box 7. The return is assessing this gentleman a 10% penalty because of this code. He obviously is over the age of 59 1/2. Is this a problem that needs to be corrected by the issuer of this 1099R or is this correct? I have never seen this code in box 7.

Thanks for your help in advance.

Tanya

[TAXNJ]

My client is a 85 year old man who received a 1099R with the code 1D in box 7. The return is assessing this gentleman a 10% penalty because of this code. He obviously is over the age of 59 1/2. Is this a problem that needs to be corrected by the issuer of this 1099R or is this correct? I have never seen this code in box 7.

Thanks for your help in advance.

Tanya

See link below from earlier TTB forum post. If you read all the reply posts you may find a solution to address your issue.

http://forum.thetaxbook.com/showthread.php?23113-1099R-box-7-Code-7D

[BP.]

85 year old man who received a 1099R with the code 1D in box 7.

Use Form 5329 - see TTB 13-3 - First bullet point under "Code 12 Exceptions."

[TAXNJ]

as reply poster BP suggested reference below:

Code 12 Exceptions
• Distribution on or after the date the participant turned age 59½ if box 7, Form 1099-R, incorrectly indicates it is an early distribution with codes 1, J, or S.
[IRC §72(t)(2)(A)(i)]


Contact form 1099-R issuer to ask if the 1099-R should be corrected based on above info.

[taxea]

My client is a 85 year old man who received a 1099R with the code 1D in box 7. The return is assessing this gentleman a 10% penalty because of this code. He obviously is over the age of 59 1/2. Is this a problem that needs to be corrected by the issuer of this 1099R or is this correct? I have never seen this code in box 7.

Thanks for your help in advance.

Tanya

Sounds like a typo. The issuer needs to correct it and reissue it. If they refuse change it yourself. If the IRS questions the change the send a Statement of Facts including detailed verifying documents.