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Retirement tax questions
No. Other reason does not apply. If TurboTax indicates that the distribution is subject to an early-distribution penalty, the distribution is not a distribution of ESOP dividends which TurboTax already knows would be penalty-free because they would be reported with code U in box 7 of the Form 1099-R.
The only exceptions that might apply are the other exceptions in the list that @DawnC provided.
‎February 5, 2024
8:07 PM