Tax code number
L1: Tax code number Hi,
I am 54 and just started my 72T. I currently have a 72T withdrawal set up with Fidelity. I am doing my taxes and the tax code number that Fidelity uses on my statement is 5, which makes the withdrawal have a 10% penalty. What tax code number should I use to classify the SEPP as a 72T?
Mike2015-03-26 22:16, By: M Kane, IP: [22.214.171.124]
L2: Tax code number Is your “statement” from Fidelity a 2014 form 1099-R? If so, and you are talking about the code in Box 7 on the 1099-R form, that does not make sense, if it isforan IRA withdrawal. In theIRS instructions for Form 1099-R for 2014, on page 15 is the explanation for a “5” in box 7 (distribution codes). it says: “Prohibited Transaction”, and goes on to say the reason for that status is “The account is no longer an IRA”. Is the “SEP/Simple/IRA” box checked on the form? You may want tocall Fidelity about this, if you area talking about 2014 withdrawals from your IRA that you thought were a SEPP (a/k/a) 72T plan.
2015-03-27 03:25, By: Ken, IP: [126.96.36.199]
L3: Tax code number If Fidelity made a mistake, you MUST get a CORRECTED 1099-R before you file your tax return, even if you have to file an extension. Then I would attach a copy of the CORRECTED 1099-R to the tax return just to alert the IRS that there was an original incorrect 1099-R.
Since computers cannot read, yet, I would file a paper copy, and not e-file.2015-03-27 13:53, By: dlzallestaxes, IP: [188.8.131.52]
L2: Tax code number Fidelity codes my 1099r as a 1 and I have to do the Form 5329 every year to change it to 2.2015-03-27 22:59, By: rkh, IP: [184.108.40.206]
L3: Tax code number That is a common situation with all, or almost all, of the brokers and mutual funds because they will not take responsibility for knowing everything about someone’s situation and other accounts. That is understandable by those of us in the professions.
The coding of a “5” is very unusual, and must be discussed further with Fidelity.
2015-03-28 14:06, By: dlzallestaxes, IP: [220.127.116.11]