After you have entered your Form 1099-R reporting the distribution from your retirement account, one of the follow-up questions will be about the exceptions to the early distribution penalty. If you have entered more than one Form 1099-R, you may not see this screen until you have finished entering all of the Forms 1099-R.
The page will show you a list of all the categories that apply as exceptions to the penalty. Enter the amount of your distribution that applies to the correct category and that will take care of removing the penalty. You will still be subject to income tax on the distribution, but not the penalty.
If for some reason you do not have the opportunity to enter an exception, that could mean that you are not being penalized on the distribution.
To learn more about the possible exceptions available, take a look at the following TurboTax help articles:
What are the exceptions to the penalty for an early withdrawal from my 401(k)?
Are there exceptions to the early distribution penalty on an IRA?
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