Do I get penalized by the state of Georgia for a (not early) one time 401k distribution made in August of 2017?

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No, taxpayers who are 62 or older, or permanently and totally disabled regardless of age, may be eligible for a retirement income adjustment on their Georgia tax return. Retirement income includes: Income from pensions and annuities Interest income Dividend income Net income from rental property Capital gains income Income from royalties Up to $4,000 of earned income

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