If your Form 1099-R distribution was for any of the reasons listed below, it is generally exempt from additional penalties for an early withdrawal. If any of the exceptions apply, you may enter an exemption; go to:
- Federal Section
- Other Taxes
- Additional Taxes on Qualified Plans and Other Accounts, Reported on Form 5329
Enter the amount that is exempt in Part I – “Early Distributions that are not subject to 10% tax.” Select the reason from the drop-down menu.
| Reason with description provided from instructions for Form 5329 | |
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01 |
Separation from service after age 55: Qualified retirement plan distributions (doesn’t apply to IRAs) you receive after separation from service when the separation from service occurs in or after the year you reach age 55 (age 50 for qualified public safety employees). |
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02 |
Series of equal payments: Distributions made as part of a series of substantially equal periodic payments (made at least annually) for your life (or life expectancy) or the joint lives (or joint life expectancies) of you and your designated beneficiary (if from an employer plan, payments must begin after separation from service). |
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03 |
Total and permanent disability: Distributions due to total and permanent disability. You are considered disabled if you can furnish proof that you can’t do any substantial gainful activity because of your physical or mental condition. A medical determination that your condition can be expected to result in death or to be of long, continued, and indefinite duration must be made. |
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04 |
Death: Distributions due to death (does not apply to modified endowment contracts). |
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05 |
Medical Expenses: Qualified retirement plan distributions up to the amount you paid for unreimbursed medical expenses during the year minus 7.5% of your adjusted gross income (AGI) for the year. |
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06 |
Made to an alternate payee: Qualified retirement plan distributions made to an alternate payee under a qualified domestic relations order (doesn’t apply to IRAs). |
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07 |
Unemployed individuals for insurance: IRA distributions made to certain unemployed individuals for health insurance premiums. |
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08 |
Higher education purposes: IRA distributions made for qualified higher education expenses. |
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09 |
First home purchase: IRA distributions made for the purchase of a first home, up to $10,000. |
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10 |
Qualified retirement plan distributions made due to an IRS levy. |
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11 |
Reservists while serving on active duty: Qualified distributions to reservists while serving on active duty for at least 180 days. |
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12 |
Other. See Other explained in instructions, click here. |
Other: Click here to reference IRS Publication 575 to view other exceptions.