Yes, you will be subject to additional 10% penalty tax if the distribution is an early distribution and no exceptions apply to your situation. Unfortunately, avoiding potential foreclosure does not qualify for the exception to the penalty.
As to the ordinary tax on your IRA distribution, please be sure to answer follow up questions about
your IRA distribution. TurboTax will ask if you have any nondeductible
contributions in your IRA (called basis). Please be sure to enter your basis
amount if you have any - only the difference between your distribution and your basis will be
taxed.
To enter form 1099-R, please
follow the steps below:
- Federal Taxes
- Select Wages and Income
- Scroll down to Retirement Plans and Social
Security
- Select IRA, 401(k), Pension Plans (1099-R)
