2015 tax filing
L1: 2015 tax filingDOB 4/28/1955
Sepp started 7/9/2010 ended 7/15/2015. 5 years. I did not take any more distributions. However, I turned 59 1/2 in April 2015. Vanguard always coded 1099R with a 1 instead of a 2 which, I was always able to correct with the 5329. This year, Vanguard sent 1099R with a code 7 (since I was 591/2 in 2015). At this time, through H&RBlock online, I cannot seem to fine the “page” to be able to recode to a 2. If I do my taxes and leave it a code 7….will this be a red flag issue since it will not be coded as a 2 for a SEPP for 5 full years?
2016-03-04 20:51, By: cah, IP: [126.96.36.199]
L2: 2015 tax filingYou can leave it alone as a 7, which happens to be the correct code. Form 5329 is not designed to change one non penalty code to another non penalty code and changing this one to a 2would be incorrect. In addition, the 1099R instructions indicate that the IRA custodian should code distributions after age 59.5 as code 7 unless there is a modification of SEPP payments. In that case they are to use code 1. Therefore this should not be red flag.2016-03-06 18:21, By: Alan S, IP: [188.8.131.52]
L3: 2015 tax filingThank you Alan for your answer. I have really appreciated this website and all who have helped me these past 5+ years. Thanks to everyone!2016-03-09 22:12, By: cah, IP: [184.108.40.206]