Distribution Codes

L1: Distribution CodesI have received 2 1099Rs for my 72T. One with the Code 2 for 3 months and one with Code 3 for 9 months. My question is: Can this be corrected on Form 5329? I was disabled the entire year of 2006.
Thanks,
J.J.2007-02-13 14:08, By: J.J., IP: [139.76.128.68]

L2: Distribution CodesResearch if your disability fits the criteria under the exceptions to the 10% penalty for early distributions. If it does, then there is/was no need to set up a SEPP 72-T. If your disability is “permanent”, then you check with an experienced tax professional to see if it makes sense to terminate the SEPP 72-T. You might be able to escape the 10% penalty for “busting” it if you can document that you were disabled the entire time you had the 72-T. Further, you should be able to get the institution to correct/reissue the 1099-R with a 3 code for the entire year. Disability (code 3) is an exception to the 10% penalty, and you are not required to have a “plan” of distributions under the disability exception. You probably started a SEPP 72-T, and 3 months later informed them that you were disabled. If they goofed initially, it will be easier to get them to correct their mistake.2007-02-13 21:13, By: dlzallestaxes, IP: [4.175.9.248]

L2: Distribution CodesI would like to get some specifics about this case to get a clearer picture of what”s going on. So JJ, please answer the following:
What date did you receive your first distribution under your SEPP Plan?
What date were you “officially” declared “disabled” which qualified you for the exception to the 10% penalty?
What documentation did you present to your custodian that caused them to issue the “Code 3” 1099-R?
I believe we have determined from previous posts that when someone becomes “disabled” and they have a SEPP Plan in operation, it doesn”t matter how long the plan has been in operation when the change to “disabled” occurs. So if a plan is 10-months old and the change to “disabled” occurs in the 11th month, then terminating the SEPP Plan after only 10 months is not a bust. Comments?
Jim2007-02-14 07:48, By: Jim, IP: [70.184.2.72]

L2: Distribution CodesJim,
My first distribution was April, 2004. Started receiving SSA Disability January, 2006. This April, 2007 will complete 3 years of distribution by 72T. Presented papers from SSA showing disability award to custodian.
J.J.2007-02-14 11:53, By: J.J., IP: [139.76.128.68]