Is there an error in the California program? It is calculating an early withdrawal tax on an IRA withdrawal, but I was well past 59 1/2 at the beginning of 2018.
Is there an error in the California program? It is calculating an early withdrawal tax on an IRA withdrawal, but I was well past 59 1/2 at the beginning of 2018.
Found out that there is no error. California adds a 2.5% "premature withdrawal" tax on IRA rollovers to HSAs. The TurboTax program called that an "early withdrawal" tax, hence the confusion.
Is there an error in the California program? It is calculating an early withdrawal tax on an IRA withdrawal, but I was well past 59 1/2 at the beginning of 2018.
Found out that there is no error. California adds a 2.5% "premature withdrawal" tax on IRA rollovers to HSAs. The TurboTax program called that an "early withdrawal" tax, hence the confusion.
Is there an error in the California program? It is calculating an early withdrawal tax on an IRA withdrawal, but I was well past 59 1/2 at the beginning of 2018.
The California 2.5% additional tax does not apply to someone over age 59½. What *does* apply is that an HSA Funding Distribution is taxable in California because HSA contributions are not excludible from income in California.
Sign In
