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FAQ’s

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Last Updated On
ByJT

L1: FAQ’sThe following statement is in the FAQ section of this website. I’m wondering if it is correct.Q. Are there any IRS filing requirements?A. That depends on how form 1099-R is coded when you receive it from the Trustee/Custodian that is making the SEPP distributions. If 1099-R box 7 is coded with a 2,(early distribution, exception applies under 59 1/2), then nothing additional needs to be filed. If however, box 7 has a code of 1 (Early distribution, no known exception) or 7 (Normal distribution) then you must file IRS Form 5329 to claim the exemption to the 10% penalty tax.I can’t find anything in the instructions for form 5329 that says you have to file the form for a distribution code of 7. I have been getting my pension for several years and it comes with a code of 7 and I have never filed form 5329.What is correct?2011-02-18 19:59, By: JT, IP: [184.96.184.245]
L2: FAQ’sIRS Form 5329 is correct. You only need 5329 to claim an exemption that you didn’t receive on the 1099.2011-02-18 20:03, By: Gfw, IP: [24.148.10.164]

L3: FAQ’sIf the FAQ answeris not correct, then it should be changed so people aren’t confused.2011-02-19 20:59, By: JT, IP: [184.96.184.245]

L4: FAQ’sHad you taken the time to look… you would have seen that it was changed earlierthis morningwhen I replied toyour first message.2011-02-19 21:38, By: Gfw, IP: [24.148.10.164]

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