BillM223
Expert Alumni

Retirement tax questions

The $300 equals the amount of the early distribution penalty (i.e., 10% of $3,000). You will also owe income tax at the ordinary income tax rate on the $3,000. This amount - which is calculated automatically by TurboTax - is equal to $3,000 times your marginal tax rate (10%, 12%, 22%, whatever).

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