You'll need to sign in or create an account to connect with an expert.
Ultimately, the IRS and the current tax laws will determine whether you will be subject to the 10% early distribution penalty.
When you enter the information from your Form 1099-R that reports the distribution, there will be some follow-up questions (after all 1099-Rs have been entered). One of those questions will cover any possible exceptions to the early distribution penalty.
You will see a screen with the title, “Let’s See If We Can Lower Your Tax Bill” with some information and links that describe possible exceptions to the penalty. The next screen will allow you to enter the amounts from the distribution that qualify for an exception. This only excludes the additional 10% tax, not the ordinary income tax on the distribution.
For more information, here is a link to further details from the IRS: https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-tax-on-early-distri...
Ultimately, the IRS and the current tax laws will determine whether you will be subject to the 10% early distribution penalty.
When you enter the information from your Form 1099-R that reports the distribution, there will be some follow-up questions (after all 1099-Rs have been entered). One of those questions will cover any possible exceptions to the early distribution penalty.
You will see a screen with the title, “Let’s See If We Can Lower Your Tax Bill” with some information and links that describe possible exceptions to the penalty. The next screen will allow you to enter the amounts from the distribution that qualify for an exception. This only excludes the additional 10% tax, not the ordinary income tax on the distribution.
For more information, here is a link to further details from the IRS: https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-tax-on-early-distri...
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
bextel
Level 1
aysoref
Level 3
wngeiger
New Member
neilwalker2024
New Member
jasmith1019
New Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.