TurboTax

File with experts
File your taxes
Experts at your fingertips

An expert helps with your taxes, or does them for you
TurboTax Expert Full Service

TurboTax Expert Assist

TurboTax Self-Employed
Prior year taxes
File myself
File myself
Do it yourself

We'll guide you step-by-step
TurboTax Do It Yourself

TurboTax Self-Employed

TurboTax Desktop
TurboTax Free

Activate your product

Prior year taxes
Business
Business
Business taxes

Get your T2 corporate return done right, your way
TurboTax Business

TurboTax Business Desktop
Tax situations
Tax situations
Tax situations

Find extra guidance for your big life moves
For investors

For 25 and younger

For self-employed

For new to Canada

For life changes
Resources
Resources
Resources

Explore tax tools, get tips, and read reviews
Personal income tax calculator

RRSP savings calculator

Learning hub

TurboTax support (FAQ)

TurboTax community
Pricing

Level 1

Question

I am confused about my 1099 R. If I quit working for the employer, can i avoid the penalty? The reason I cashed out was because i quit the job.

Forum|Forum|6 years ago
February 5, 2020
2 replies
13 views

No text available

TurboTax Deluxe Online

Level 15

If you were not age 59 1/2 or older in the year of the withdrawal, then you will owe a 10% early withdrawal penalty which is assessed on your tax return after you enter the 1099-R.

Level 15

Quitting a job is not an exception to the early-distribution penalty. You had the opportunity to roll this distribution over to another qualified retirement account to continue to defer this income and avoid the early-distribution penalty.