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I'm not a CPA nor an IRS agent, but if I wanted an answer to this question I would head to the IRS form which implements penalties and the exception for Rule of 55 to see what it says. That would be form 5329, and the instructions for line 2. Note that the IRS calls a penalty an "additional...

Did you get an email acknowledging receipt? I sent in paper bonds in February and the email I received said to allow up to 13 weeks. I checked at about 12 weeks and they weren't there yet. We're now at about 15 weeks and I just checked and they are in my account. So you may have another couple...

Bottom line is that you're going to have to declare to the IRS that you took a 401(k) distribution before age 59.5 and that you have a valid exception why you shouldn't pay a penalty. The list of exceptions (form 5329, line 2) includes "Qualified retirement plan distributions (doesn’t apply to...

Ah, that makes sense - thanks!

This seems to imply that the ACA 400% FPL cliff is back for 2022. But it's not - the 8.5% cap applies for income over 400% FPL. So being just over or just under 400% FPL has negligible effect. See table 2 "applicable figure" on form 8962 instructions for confirmation. I'm curious what tax...

This year I filed electronically on April 5 and received my paper IBonds by the end of April.

The internet and in particular the Motley Fool and its message boards. 25 years ago I barely knew the stock market existed. My only investments were mutual funds through a financial advisor who I now recognize was funding his lifestyle with my money via loads, fees, commissions. The Fool...

If you're dissatisfied with the federal government's website you can buy your iBonds from one of their competitors. Uh huh. They know that too.

I'm under 59 1/2, did a Roth conversion at Fidelity last year and the 1099-R box 7 was distribution code 2 "Early distribution, exception applies (under age 59-1/2)".

I used freefilefillableforms which has always asked for W2s to be created and sent. This was my first year with 1099-Rs and sure enough it asks for those to be created and sent too. It doesn't limit the request to just those with withholding - it says it wants all of them.

I did a quick run-through with TaxSlayer to see what it was like. It seemed pretty friendly and it ended up matching my hand-done return at freefilefillableforms. TaxSlayer wouldn't show the completed forms without payment, but it did break out the main 1040 line items so that I could do a...

Yeah I'm deep into Pub 970 - the example on page 53 which covers the coordination of QTP distributions with credits seems to apply exactly to my situation. And that requires 1099-Q input.

Thank you Cathy. It's good to know that I'm reaching outside Tax-Aide limits with some variations of 1099-Q and the like. I've found this gets tricky and I wouldn't want to mess up someone else's return if I'm supposed to be helping them out. For the record, I only entered the 1099-Q info...

Does anyone know for sure which other free tax software allows you to see the forms without paying? I've done my taxes directly on freefilefillableforms for years. This thread has made me interested in signing up to be a Tax Aide volunteer next year. I'd like to try some tax software to both...

From https://www.treasurydirect.gov/indiv/research/indepth/ibonds/res_ibonds_itaxconsider.htm : "Once you start to report the interest every year ..., you must continue to do so every year after that for all your savings bonds... and any you acquire ... in the future." (The ellipses were for...

I enrolled with EFTPS the week before Christmas, and my letter/pin from the IRS is apparently arriving in today's mail. So a couple of weeks turnaround during a heavy mail season with a couple of holidays in there. Anyone enrolling in EFTPS today *may* get their IRS response in the mail before...

No idea how being in a state with expanded Medicaid would or would not affect this, but from the purely federal tax side it looks like you're ok. Form 8962 is where you deal with PTC, and the instructions for line 5, where you may end up with less than 100% of the federal poverty line, say that...

See IRS form 8888. You get to specify how much goes under each person's name.

Tax refund IBond purchase is done with IRS form 8888, however you submit your taxes.

I'd suggest anyone who thinks the same should read their plan documents very carefully, because I thought that my Fidelity 401k plan said the same thing, but on closer reading it didn't. The wording was something like "if you retire after age 55 you can make withdrawals penalty-free, but before...

Don't forget that you can buy an extra $5k of iBonds by using your tax refund. To make that work, pay an additional $5k over what you think will owe as an estimated payment, due by January 15. Then you'll receive that back as a refund, and use form 8888 to buy the additional $5k of iBonds.

What debate is there? The IRS rules specifically say that the additional tax on early distributions doesn’t apply when "the separation from service occurs in or after the year you reach age 55". I'm having trouble coming up with a different interpretation to debate.

You tell the IRS that it was a qualified withdrawal when you file your taxes. Form 5329 asks you why you have an exception to the 10% penalty, and you supply the reason. The rule of 55 exception is exception 01, according to the form instructions.

FWIW, my E*Trade 1099 showed up today, 5 days ahead of schedule. It doesn't have anything on it that I haven't kept my own records for, so I'll compare it to my info. If everything matches I don't see any need to wait for a possible future amended 1099.

eTrade says to expect them on Feb 18th. I suspect that's because it's the first business day after the 14th this year. 15th is a Saturday and Monday 17th is Presidents' Day.