1099-R, Box 7, Code 2

[Black Bart]

Guy brought one in; his factory closed down -- said CPA told him no 10% penalty on the code two. I agree, but he said they also told him that had only been in effect for about two years. I thought it had been a no-penalty item for many years. Anybody agree/disagree?

[ecb34691]

agree at least 10 years from my aged memory.

[Joe Btfsplk]

He must have misunderstood

Guy brought one in; his factory closed down -- said CPA told him no 10% penalty on the code two. I agree, but he said they also told him that had only been in effect for about two years. I thought it had been a no-penalty item for many years. Anybody agree/disagree?

The CPA probably said something else. Possibly the client had only qualified for the Code 2 treatment for two years. It is highly unlikely that a CPA would make such an unfounded comment.