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code 2 problem

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Last Updated On
ByTheresaM

L1: code 2 problemHello,last year,I was 55 and separated from service, and cashed in my Fidelity401K ( paid taxes upfront) . I got a code 2 on my 1099R without the little IRA/SEP box checked. Also last year I started a 72T from my Schwab Ira and got the code 2 in box 7 with the IRA/SEPP box checked. My question : Will thesetwo code 2’s, from two different institutionsconfuse the IRS??. Is this the correct code for the cashing in the 401K?If not whatshould it be? Just want everything to go well since this is the first IRS SEPP filing . I also had a pensionlump sum ( code G)rollover and my wife did too. So alot happened.Thanks so much…..2010-01-28 00:39, By: TheresaM, IP: [75.88.198.233]
L2: code 2 problemLook at the Resources/Linksmenu option and review the instructions for for 1099-R. Code ‘2’ is used for “A distribution from a qualified retirement plan after separation from service in or after the year the taxpayer has reached age 55.”. The IRA/SEP box would not be checked since the distribution was from a qualified plan and not an IRA.2010-01-28 12:02, By: Gfw, IP: [216.80.125.206]

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