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Level 2

Question

How do I avoid the 10% penalty using the rule of 55?

Forum|Forum|6 years ago
July 15, 2020
6 replies
48 views

No text available

TurboTax Premier Online

Level 2

You don't do anything. If you are over 55, you can get your pension. If this is an IRA, you pay the 10%

I'm not looking over your shoulder, so I can only guess what 10% penalty you're talking about.

https://www.irs.gov/taxtopics/tc558

paulririshAuthor

Level 2

10% penalty for early withdrawal from 401(k)

Level 15

In the 1099-R interview, after you enter the data off your form, you should be asked whether or not you qualify for one of the exceptions to the early distribution penalty.

Yes, you do, and it's because you were separated from service after 55. Make sure to indicate that.

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