Was offered buyout from previous employer. Took money in cash and rolled over the rest. Why am I getting penalty on what was taken in cash at age 58. I had info that you won't be subject to the additional 10% penalty if you are over 55 on a buyout.
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Age 59 1/2 is the age. There are exceptions to the penalty but you have to select one in the program.
There are certain exceptions to this additional 10% tax. The following six exceptions apply to distributions from any qualified retirement plan:
The following additional exceptions apply only to distributions from a qualified retirement plan other than an IRA:
Look for the screens below for electing the exclusion.
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