dmertz
Level 15

Retirement tax questions

I'm not sure what you mean by "penalized automatically" since the distribution is not subject to tax or penalty because the distribution is coming from your basis in the contributions that you originally made.  There was also no requirement that taxes be withheld unless you failed to specify whether you wanted no taxes to be withheld or that you wanted more than 10% to be withheld.

 

Enter the Form 1099-R as DoninGA indicates and be sure to click the Continue button on the Your 1099-R Entries page and, when TurboTax asks, be sure to enter or confirm the amount shown as your contributions for years prior to 2019.