cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
New Member

Early pension payout

My husband, age 50, received an early pension payout last year.  Will turbo tax file all forms necessary for that or do we need to fill out a form 5329 to claim the 10% penalty for being younger than 59 1/2?

1 Reply
Highlighted
Employee Tax & Finance Expert

Early pension payout

In TurboTax, your husband needs to enter the form 1099-R that he received for the distribution. On that form, there is a code in box 7 which will indicate that the distribution is an early withdrawal. He has to follow the 1099-R to the end. If he is liable for the 10% penalty, TurboTax will calculate it, fill out form 5329 and include the amount of penalty in the final refund or tax due on the tax return. He does not have to pay the penalty separately.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"