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Level 1

Question

401k distribution 55+

Forum|Forum|4 years ago
March 7, 2022
2 replies
8 views

Hello, I took a 401k+ distribution at 55+, however, TurboTax is applying the 10% penalty even though I am separated from that employer. Why would this be happening and how can I fix?

TurboTax Business Windows

Level 15

That issue is well covered here.

https://ttlc.intuit.com/community/retirement/discussion/re-retirement-at-age-55/01/1942649

Level 15

Note that you only qualify for this exception if the distribution was from the 401(k) of an employer from which you separated from service in or after the year you reached age 55. If you left this employer before the year you reached age 55, you do not qualify for this exception.