Since you lived in a federally declared disaster area, you can abate the penalty on up to $22,000 of distributions.
Here's how to enter this in TurboTax Online:
- Navigate to Federal > Wages & Income > IRA, 401(k), Pension Plan Withdrawals (1099-R) Add/Edit
- Edit the 1099-R if you have already begun entering the information or Add a 1099-R
- Enter the information from the 1099-R
- Continue through interview, on the screen Do any of these situations apply to you? choose I took out this money due to a qualified disaster
- Continue through interview, you will be asked Was this a withdrawal due to a 2023 or 2024 Qualified Disaster?, select the appropriate year.
