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If you file using Turbotax, and enter a 1099-R for a 401k withdrawal, you will be asked about special circumstances that might qualify for a reduction in the penalty for early withdrawal. You can be exempt from the penalty for half your withdrawal, or $10,000, whichever is less. You will have to pay the penalty on the rest of the withdrawal. And of course, you will owe regular income tax.
If you file using Turbotax, and enter a 1099-R for a 401k withdrawal, you will be asked about special circumstances that might qualify for a reduction in the penalty for early withdrawal. You can be exempt from the penalty for half your withdrawal, or $10,000, whichever is less. You will have to pay the penalty on the rest of the withdrawal. And of course, you will owe regular income tax.
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