Hello, so it states i am getting taxed a penalty for early withdrawl 10% but I am on a deffered comp 457 plan that there should not be any early withdrawl penatly.

Yes, 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 (IRS).

 

When you get to the "These Situations May Lower Your Tax Bill" screen enter your amount under "Other". 

 

1. Login to your TurboTax Account 
2. Click on the Search box on the top and type “1099-R”
3. Click on “Jump to 1099-R” and enter your 1099-R
4. Click "continue" on the "Review your 1099-R info” screen
5. Answer all questions carefully until the "These Situations May Lower Your Tax Bill" screen enter your amount under "Other". 

 

 

Other reasons for no additional tax on your early retirement withdrawal

 

"If you took the money out,

• When you were older than 59 1/2 ,
• From a section 457 plan that you didn't roll over from another qualified retirement plan, or
• From ESOP employer stock dividends,

Then, enter the dollar amount next to Another Reason. You may not need to pay additional tax on your early retirement withdrawal"