Form 5329

[Marie]

Client withdrew from IRA, #1 distribution code, only 1 1099. How do I get the "no" to print on line 60. I don't think there is any reason to file 5329, as the instructions read. But how do I get the software to do the "no". I'm sure there is something I didn't mark right, but can't figure it out. Thanks for any help

[jklcpa]

I just did a test return with a 1040, 1099-R input & 5329 forms all open initially. I input data in 1099-R tab. Program didn't put in the "NO" at first.

THEN, I deleted the form 5329 from the return. VOILA, the "NO" appears to the left of line 60.

Hope this helps.

[joanmcq]

I don't understand why you don't need the 5329 if the code was 1. Code one means early withdrawal, no exception to the penalty. So if you have one of the allowed exceptions, you need the 5329 to show the exception.

[jklcpa]

Joan, check out the 1040 instructions for line 60 for 2007. There's now an exception so that 5329 isn't required even when the 10% penalty is to be paid.

[kcjenkins]

Joan, the point is, if there is no exception to claim, you do not need the 5329, because it is going to all be subject to the penalty. You only need the 5329 when you have an exception to claim.