TP receives a 1099r with code 1. TP receives a lump sum for 3 years from ss after winning disability award. Can I use this as an exception to avoid the 5329 penalty since ss declared him disabled beginning in 2015?
-
-
I just had a similar situation last week. Taxpayer was collecting SS Disability (he is only 55). Took an IRA distribution of $10K in 2018 and bank coded 1099-R code 1. I completed 5329 to avoid the pre-mature distribution penalty. I also asked the taxpayer to see if bank will make a change in their records and code the 1099-R correctly and also issue a corrected 1099-R for 2018.Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDR -
It is not likely they will complete a new 1099R as they are not in a position to determine disability for tax return purposes. The 5329 request for exception will do it.Comment
Comment