IRA early Distribution question

[barosser]

TP lives in Hurricane IKE disaster area. After the storm she took 5 K out of IRA and put 2500 back within 60 days. I have a IRA contribution slip that shows the $2500.00 contribution. Form 5498 shows no contributions only the FMV of the IRA. 10-99 R shows box 7 code 1 with 5K gross distribution and 5K taxable.

Is there a exception to the penalty on the 2500 that was put back in? If so what code would that be since I cant seem to find it.

Thanks in advance.

[neilbrink]

TP lives in Hurricane IKE disaster area. After the storm she took 5 K out of IRA and put 2500 back within 60 days. I have a IRA contribution slip that shows the $2500.00 contribution. Form 5498 shows no contributions only the FMV of the IRA. 10-99 R shows box 7 code 1 with 5K gross distribution and 5K taxable.

Is there a exception to the penalty on the 2500 that was put back in? If so what code would that be since I cant seem to find it.

Thanks in advance.

In the 1099_R Worksheet, in 2a fill in the amount that was rolled-over (put back in). This should produce the correct calculations for you. Neil