ILLMAS Posted September 1, 2016 Report Share Posted September 1, 2016 Does anyone know if code L (Loan treated as distribution) on a 1099-R is not subject to the early withdrawal penalty? ATX is not calculating a penalty and just want to make sure. MAS Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted September 1, 2016 Report Share Posted September 1, 2016 It IS subject to early withdrawal penalty. Treat it as if it were a distribution and disregard the loan factor. If the client is not 59 1/2, they pay the penalty. 5 Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted September 1, 2016 Author Report Share Posted September 1, 2016 Yes TP is way under the 59.5 age. Quote Link to comment Share on other sites More sharing options...
Pacun Posted September 2, 2016 Report Share Posted September 2, 2016 18 hours ago, ILLMAS said: Yes TP is way under the 59.5 age. Ask him to fork out the money and pay the penalty. 2 Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted September 6, 2016 Author Report Share Posted September 6, 2016 On 9/2/2016 at 10:05 AM, Pacun said: Ask him to fork out the money and pay the penalty. They said no, so a payment plan it is. Quote Link to comment Share on other sites More sharing options...
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