Correct. NC does not have a specific penalty for an early withdrawal..
Just make sure..on the followup page to the main 1099-R form that the NC Distribution amount is entered...it must be either box 2a from the form, or the federally-taxable amount of box 1 if box 2a is empty...but for a 401k distribution, it is usually the same number.
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
