Yes, if you have a code 1 in Box 7 of your 1099-R instead of 7 (normal distribution), you may have to pay 10% early withdrawal penalty.
There are exceptions to the 10% tax penalty for early
distributions:
- Death, or total and permanent
disability
- Series of substantially equal
periodic payments based on life expectancy
- Qualified first-time
homebuyer distributions up to $10,000
- Qualified higher education
expenses
- Certain medical insurance
premiums paid while unemployed
- Unreimbursed medical expenses
that are more than a certain amount of your adjusted gross income
- IRS levy
- Certain distributions to
qualified military reservists called to active duty
Unless you qualify for an exception, you’ll pay a 10% additional tax penalty.
