DORFMONT[at]aol.com wrote:

- quote -

I'm thinking she did get a 1099; just not a 1099R form.
After all, you say she can't find the form. But the
CP-2000 notice will indicate what kind of form, but you seem
to indicate you have that in hand.

What's needed is a copy of the 1099R form that IRS got.
And you can get it. Use the new eServices as a quick
"highway to heaven."

ChEAr$,
Harlan Lunsford, EA n LA

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

I asked my client if she had the 1099R that the IRS got. She
could't find it. I suspect that the check was sent to her
by the Life Insurance company with a letter and no 1099 was
sent to her. All she got was the CP-2000 letter from IRS
with the distribution shown on it. We can't even find a code
although IRS seems to know she is not over 59 1/2.

Linda Dorfmont E.A., CFP, CSA

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

Linda-

Did you sell her or suggest this Life Insurance policly to
her? Linda-you really should know this being a CFP and thus
being an expert on financial planning products. Go back to
your training as a CFP - Is Life Insurance EVER described as
a Retirement Account or for that matter EVER an INVESTMENT?

By DEFINITION Life Insurance is NOT an INVESTMENT and thus
CANNOT be a Retirement Account which then does not make it
subject to the 59 1/2 early withdrawal penalty - despite the
fact that she received a 1099R.

The answer is: NO it is not subject to the early withdrawl
penalties. But the money in excess of the cost basis should
be reported on lines 16a & 16b of her 1040 unless she
withdrew the money as an Accelerated Death Benefit.

Mark-

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

DORFMONT[at]aol.com wrote:

- quote -

What do you see in block 7?

ChEAr$,
Harlan Lunsford, EA n LA

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

<DORFMONT[at]aol.com> wrote:

- quote -

I'm not aware of anything in section 72 that imposes a
penalty.

--
Phil Marti
Clarksburg, MD

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

This is proably a dumb question but my client cashed out her
life insurance and got a 1099R for it showing the cost basis
in premiums paid and the total distribution. Is this excess
cash value subject to the early withdrawal penalty if she is
under 59 1/2? I haven't found anything in the Pubs on this
issue.

Linda Dorfmont E.A., CFP, CSA

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->