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New Member
posted Jan 26, 2023 9:55:42 PM

I had to withdraw my retirement because I was fired, but none of that was an option on this tax forms. What do I do?

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1 Replies
Level 15
Jan 27, 2023 4:54:47 AM

You had the option to roll these funds over to another retirement account like an IRA to continue to defer this income.  If you did not do so, the distribution is taxable and, if you are under age 59½ and you have no penalty exception that applies, to a 10% early-distribution penalty on the taxable amount.  Being fired is not an exception to the early-distribution penalty.