AnnetteB6
Expert Alumni

Retirement tax questions

According to the IRS, one distribution per calendar year may be excluded from the early withdrawal penalty "for personal or family emergency expenses, up to the lesser of $1,000 or vested account balance over $1,000 (made after 12/31/2023)."

 

So you would not be able to exclude your entire early distribution penalty, but this exception could reduce it.

 

As mentioned by MarilynG, after you have entered your Form 1099-R there will be a list of possible exceptions to the early distribution penalty.  

 

@JAVA417 

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