1099-R Box 7, Code 2 (exception applies)
Client has 1099-R with distribution code 2 in Box 7. Some exception applies. Inputting code 2 still shows this as taxable Should I fill out 5329 if so, where?
Client has 1099-R with distribution code 2 in Box 7. Some exception applies. Inputting code 2 still shows this as taxable Should I fill out 5329 if so, where?

The exception applies to the 10% penalty, not the taxability of the distributions.