MindyB
Expert Alumni

Retirement tax questions

Yes, it sounds like you qualify for the "Rule of 55", which is an exception to the early retirement withdrawal penalty, if you are 55 or older, and are withdrawing from your current retirement plan. Note, this only applies to the plan of the most recent employer that you separated from after 55.  If that is correct, you can claim it by entering the 1009-R information, then continuing through the interview until you get to the screen "These Situations May Lower Your Tax Bill."  Here, enter the amount you took out that met the Rule of 55.

 

Here is some more information from the IRS: Retirement topics - Exceptions to tax on early distributions