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Get your taxes done using TurboTax
Code 2 is for early distribution. You pay tax and a penalty on early distribution. Once you reach 59-1/2 there is no early withdrawal penalty, so it become Code 7 for normal distribution. It is taxed as income, but no penalty is paid on the withdrawal. I do not know if you actually paid penalties, but you could have been subject to them before you turned 59-1/2.
March 30, 2022
4:57 AM