dmertz
Level 15
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Retirement tax questions

When you enter a Form 1099-R that reports an early distribution, TurboTax will present a page where it asks if any of the listed penalty exceptions apply.

 

Penalty exceptions exempt you from the penalty.  They are not waivers of the penalty, they are reasons that the penalty does not apply at all.  The IRS has no authority to waive an early-distribution penalty.

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