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?
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.