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Form 5329
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If you take a distribution from a retirement plan including IRA account before age 59 1/2, you must pay the 10% additional tax on the amount you withdrew. However, if you qualify for an exception on Form 5329, you do not need to pay. Due to the Section 2202 CARES Act, if your distribution is related the Covid-19, you will not be liable for this additional penalty. For more information from the IRS, click here: Covid Relief. If your distribution is not related to the Covid, you will need to pay the penalty.
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