l_casarez
New Member

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?