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New Member
posted Jun 4, 2019 4:16:12 PM

Can I use TurboTax free if I have 1099-R's, SSA-1099-sm, use the standard deduction, and have received distribution from a 401K prior to the age of 59?

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1 Best answer
Level 15
Jun 4, 2019 4:16:14 PM

Yes you can use the Free online editions for those forms.  

Except if you were under age 59 1/2 in the year of the 401(k) withdrawal.  Then there is a 10% early withdrawal penalty that has to be assessed on the federal tax return and is entered as a tax liability.  In that case you would have to use the Deluxe edition for your tax return.

However, if the distributions made to you after you separated from service with your employer if the separation occurred in or after the year you reached age 55 then there would be no penalty.  

See this IRS Tax Topic - https://www.irs.gov/taxtopics/tc558

1 Replies
Level 15
Jun 4, 2019 4:16:14 PM

Yes you can use the Free online editions for those forms.  

Except if you were under age 59 1/2 in the year of the 401(k) withdrawal.  Then there is a 10% early withdrawal penalty that has to be assessed on the federal tax return and is entered as a tax liability.  In that case you would have to use the Deluxe edition for your tax return.

However, if the distributions made to you after you separated from service with your employer if the separation occurred in or after the year you reached age 55 then there would be no penalty.  

See this IRS Tax Topic - https://www.irs.gov/taxtopics/tc558