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gem1028
New Member

Can i get to minimize an early withdrawal from taking out of my pension by listing what it was used for? The 2017 version doesn't seem to have box for me to fill it in

 
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LindaA
Expert Alumni

Can i get to minimize an early withdrawal from taking out of my pension by listing what it was used for? The 2017 version doesn't seem to have box for me to fill it in

Possibly. There are different exceptions to the early distribution penalty depending on the type of retirement plan. TurboTax will ask questions late in the 1099-R interview to see if you qualify for an exception to the additional 10% tax on an early distribution. 

After you enter the information from the 1099-R and answer a series of questions, you'll land on Your 1099-R Entries. When you click Continue, TurboTax will ask additional questions. One screen states "Let's see if we can reduce your early withdrawal penalty." (You can click the links on this page for more information about the exceptions.) When you continue through the interview, TurboTax will display "These Situations May Lower Your Tax Bill". You'll be able to see if there is an exception that applies to your situation. 

Please note that there are different exceptions for different types of retirement plans (IRA and other plans).

Please click the screenshots below for reference.

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