During 2023 I surrendered a cash-value life insurance policy. I received a 1099-R with Box 7 showing 1D. I bought the policy with after-tax money. The policy was not funded by nor part of a retirement account. It appears that if I enter 1D in box 7 on turbo tax I am seeing an additional tax of 10% (which I equate to an early withdrawal penalty). My gut tells me to only enter D in box 7 for turbo tax. Your assistance is appreciated.
Thank you
