Marie Posted January 30, 2011 Report Posted January 30, 2011 Client was granted Soc Sec disability back into 2009. 2010 drew out lots of IRA's. One 1099 put exemption 3, another 2, and one had a "1". Because of the disability, can I fill out the 5329 and use exemption 3. If TP is diabled, does it make any difference why or how much IRA he takes out? I know it is still taxable, but I'm wondering about the 10% penalty. Quote
Crank Posted January 30, 2011 Report Posted January 30, 2011 Yes, use 5329 to show that the distribution isnt subject to the 10% tax due to disability, if I remember correctly. Quote
kcjenkins Posted January 31, 2011 Report Posted January 31, 2011 Yes, you can use the 5329 to correct any mis-coded 1099R. Quote
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