Retirement tax questions

Turbo Tax will automatically calculate any penalties on it based on your age and the code in box 7 on the 1099R.  If you took it out early before 59 1/2 there is a 10% Early Withdrawal Penalty.   For 2021 the penalty will be on Schedule 2 line 8 which goes to 1040 line 23.

 

There are a few exceptions which will be covered when you fill out your tax return.

 

Exceptions for Early Distributions from a Qualified Retirement Plan such as a 401(k) or 403(b) plan. See Pub 575 page 36 Additional Exceptions
https://www.irs.gov/pub/irs-pdf/p575.pdf

..Distributions upon the death or disability of the plan participant.
..You were age 55 or over in the year you retired or left your job. (50 for qualified public safety employees)
..You received the distribution as part of "substantially equal payments" over your lifetime.
..You paid for medical expenses exceeding 7.5% of your adjusted gross income.
..The distributions were required by a divorce decree or separation agreement ("qualified domestic relations court order"),


The questions about exceptions to the penalty do not come after entering the 1099-R. Rather, you will see that area after you have finished all the Deductions and Credits section.