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Does TurboTax software calculate a 10% penalty for early withdraw from a 457 deferred comp. plan like other retirement plans? There is no 10% penalty from a 457 plan.

 
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KatrinaB
Intuit Alumni

Does TurboTax software calculate a 10% penalty for early withdraw from a 457 deferred comp. plan like other retirement plans? There is no 10% penalty from a 457 plan.

Yes. This type of nonqualified plans is not subject to the same rules as other plans. Governmental 457(b) distributions are not subject to the 10% additional tax except for distributions attributable to rollovers from another type of plan or IRA. For more information, please view the IRS link below.

https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-tax-on-early-distri...

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