ChristinaS
Expert Alumni

Retirement tax questions

Code 7 in Box 7 means "normal distribution". Are you over 59.5? That's essentially what normal means- over 59.5- at least, that's what it usually means.

When you have a normal distribution, you don't have to pay the early withdrawal penalty of 10% on the taxable amount in Box 2a. However, you do need to pay income taxes on it.

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