reporting penalty

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L1: reporting penalty
Hello, and thanks for the informative website. Here is my situation
1) I have an established SEPP thru Schwab , and I get the code 2 each year on my 1099. Everything going well.
2) I had 72 bucks left over in a company plan (Fidelity)that was distributed to me directly because they wanted to close the account, so I will need to pay the small penalty. I didn’t have a 2nd IRA to roll it over into.
My question : When I do my taxes, do I need to submit a 5329 to show the small penalty , or can I report this somewhereon the 1040? Keep in mind I do get the code 2 on my big sepp from Schwab. Thanks!!!!
2012-01-14 18:10, By: TheresaM, IP: []

L2: reporting penalty
You will get a 1099R from Fidelity and it will probably be coded 1. You do not need a 5329 unless you have another exception to the penalty. The 10% ($7) simply goes on line 58 of your Form 1040. If you separated from the company at 55 or later, then you
should get a 2 on that 1099R since separation at 55 is a penalty exception. If you qualified for that or any other exception THEN you would need a 5329 to claim that exception if this 1099R was coded 1.
None of this affects your SEPP through Schwab, and Schwab is one of the few who still provide 2 coding on their 1099R. Of course, if they drop it this year, you would need a 5329 for their 1099R.
2012-01-14 21:18, By: Alan S., IP: []

L3: reporting penalty
Thanks Alan! Thats what I thought, just wanted to be sure.
2012-01-15 00:13, By: TheresaM, IP: []

L3: reporting penalty
Just an FYI. I received a Code 2 for all five years of my SEPP from Stifel Nicolaus.
2012-01-17 00:42, By: Cheri, IP: []