Keat
In 2007, I converted a Traditional IRA to a Roth IRA. The bank sent me a 1099-R with a distribution code of "1" instead of "2". Code "1" tells the IRS that I am liable for a 10% early withdrawal penalty.
I have completed Form 8606 and entered the taxable amount into line 15b of Form 1040.
Because of the incorrect distribution code on the 1099-R, I filled out Form 5329 and entered an exception number of 12 (indicates 'Other' as in "Distributions incorrectly indicated as early distributions by code 1...")
Is this the correct way to handle the incorrect distribution code on the 1099-R? In there anything else I need to do?
I have completed Form 8606 and entered the taxable amount into line 15b of Form 1040.
Because of the incorrect distribution code on the 1099-R, I filled out Form 5329 and entered an exception number of 12 (indicates 'Other' as in "Distributions incorrectly indicated as early distributions by code 1...")
Is this the correct way to handle the incorrect distribution code on the 1099-R? In there anything else I need to do?