The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: K-1 Section 751 statement||Date: 2/25/2009 6:47 PM|
|Author: drippinfool||Number: 104713 of 123001|
"Code 2 in Box 7 of a 1099-R indicates that this is a premature distribution not subject to the premature distribution penalty. If you look at the back of the 1099-R you'll see that no 5329 is required.
With all due respect, I don't see that on the back of the 1099-R. What I see is a reference to the instructions for Form 5329.
Who Must File
You must file Form 5329 if any of the following apply, except you do not have to file Form 5329 to report a qualified disaster recovery assistance distribution, a qualified recovery assistance distribution, or the timely withdrawal of an economic stimulus payment that was directly deposited into your tax-favored account (see Economic stimulus payments on this page).
• You received an early distribution from a Roth IRA, the amount on line 23 of Form 8606, Nondeductible IRAs, is more than zero, and you are required to enter an amount that is more than zero on Form 5329, line 1 (see Exception for Roth IRA Distributions on page 2).
• You received an early distribution from a qualified retirement plan (other than a Roth IRA) and distribution code 1 is not shown in box 7 of Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.
Note. You do not have to file Form 5329 if distribution code 1 is correctly shown in box 7 of all Forms 1099-R and you owe the additional tax on each Form 1099-R. Instead, see the instructio