lcarty Posted February 13, 2011 Report Share Posted February 13, 2011 If I took a total distribution on a pension plan due to a lay off, is that considered an exception or will I owe a 10% penalty? Quote Link to comment Share on other sites More sharing options...
Lion EA Posted February 13, 2011 Report Share Posted February 13, 2011 The exceptions are on page 3 of the instructions. Do your circumstances fit any of them? Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted February 14, 2011 Report Share Posted February 14, 2011 Leaving the job, whether by retiring or by getting laid off, may qualify for the exception of the PENALTY but it will still be taxable. As suggested by Lion, read the rules before you tell the client one way or the other. Quote Link to comment Share on other sites More sharing options...
SCL Posted February 15, 2011 Report Share Posted February 15, 2011 my guess: icarty is the preparer/client and looking for a "hail mary" response to the 10% early withdrawal penalty. what does the 1099r, box 7 code say? #1? Quote Link to comment Share on other sites More sharing options...
Pacun Posted February 15, 2011 Report Share Posted February 15, 2011 my guess: icarty is the preparer/client and looking for a "hail mary" response to the 10% early withdrawal penalty. what does the 1099r, box 7 code say? #1? Good point. Last time, I was lecturing a client, explaining that he should not have taken a distribution and the client said... "I didn't receive the check". I asked him to call the issuer of the 1099-R and I continued preparing the return. When entering the info, I realized it was code G. Quote Link to comment Share on other sites More sharing options...
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