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mbn75111
New Member

How do I get Turbo Tax to recognize disability and not charge the 10% early withdrawal for 401K distribution?

 
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3 Replies

How do I get Turbo Tax to recognize disability and not charge the 10% early withdrawal for 401K distribution?

What is the code in Box 7 of the 1099-R?

MinhT1
Expert Alumni

How do I get Turbo Tax to recognize disability and not charge the 10% early withdrawal for 401K distribution?

Your early 401(k) withdrawal is exempted from the 10% early withdrawal penalty in case of total and permanent disability.

 

Please read this TurboTax Help topic for more information.

 

In TurboTax, to indicate that you are totally and permanently disabled, please follow these steps:

  1. After you have entered all your forms 1099-R, on the summary page Review your 1099-R Info, click Continue
  2. Follow the interview until you arrive at the page titled Let's see if we can reduce your early withdrawal penalty and click Continue
  3. Enter the amount of your withdrawal in the box next to Permanent disability and click Continue
  4. Your early withdrawal penalty will be waived.

You have to keep any proof of your disability in case of audit by the IRS.

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AmyC
Expert Alumni

How do I get Turbo Tax to recognize disability and not charge the 10% early withdrawal for 401K distribution?

Please see the post right above yours for the steps.

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**Mark the post that answers your question by clicking on "Mark as Best Answer"

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