DavidS127
Expert Alumni

Get your taxes done using TurboTax

Unless your IRA has engaged in a prohibited transactions described at this IRS link you should not be paying the 10% additional tax.  

 

Check the distribution code in box 7 of the 1099-R, if it is Code 1 (early distribution) instead of Code 7 (normal distribution) you should ask for a corrected 1099-R.  Also, make sure you entered the correct box 7 code in TurboTax and answered all the questions in the interview section.

 

Also note that the regular tax rate on the first few thousand of taxable income is 10%.  If you were in that tax bracket at the time the Form 1099-R was entered, your regular tax would have increased by 10% of the distribution amount.

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