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Why do I end up paying a 20% penalty on my retirement distribution that was taken out for disaster relief?
I withdrew from my retirement account last year as part of disaster relief. I was asked if I wanted to have the 10% penalty on the distribution taken out at the time, so I said yes. Now when I am filing my taxes it looks like another 10% has to be paid. I don't understand why it is 20% total especially when it was for disaster relief. Can someone help explain how that works because I have not been able to figure this out?
‎June 1, 2019
10:19 AM