Do I need to pay the extra 10% tax on my husband's ESOP distribution?

When doing my Federal return, it looked like an ESOP distribution was an exception to the additional 10% tax. Is this right?

posted

If the distribution was early, before age 59 1/2, it would normally be subject to a 10% penalty. There are exceptions to that, in the instance of death or disability for instance. Also in the case of dividends paid from the ESOP. A lot would depend on the code listed in box 7 on your Form 1099-R, can you provide that to us?

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