rschule1
Expert Alumni

Get your taxes done using TurboTax

Hi There:

 

You Mother (sorry for the bad news) is correct -assuming at the time of distribution you were not yet 59 & 1/2 years old. If not, you will need to file an IRS tax return and report an early distribution penalty on your 403B distribution, which turbo tax software will calculate. The $12,950 is an income limitation rule, but it does not include additional taxes like an early withdrawal penalty.

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