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1099-R code 3 in box 7? IRS form 5329 -- no 10% additional tax?


Will I have to pay the 10% additional tax or will the IRS regard me as disabled on Form 5329 ?
The State of California has me listed as disabled and Social Security application is pending. I took early distribution of all the IRA funds in the amount of $12,381. I am single and had no other income in 2006.

The Distribution code 3 is a distribution due to the disability and is an automatic exception to the 10% penalty. There is no need to file the 5329 for any distribution in which the 1099R reflects Distribution code 3.

Report the distribution on line 15A of the 1040 ,11A of the 1040A, and put the taxable portion on line 15B of the 1040 or line 11B of the 1040A
And if there is no Federal withholding in Box 4 do not attach a copy of the 1099R to your return, you would only attach the 1099R if Federal taxes are withheld.


Publication 590
http://www.irs.gov/publications/p590/ind...
Instructions to the 1040
http://www.irs.gov/pub/irs-pdf/i1040.pdf

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