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Level 2
June 6, 2019
Solved

I am 56 and left a job in 2017. I cashed out my 401(k). Do I have to pay the early withdrawal penalty?

  • June 6, 2019
  • 2 replies
  • 26 views
How do I file the form 5329 in turbo tax?
Best answer by DoninGA

No, there will not be an early withdrawal penalty.

Code 2 - Early distribution, exception applies (under age 59½).

2 replies

DoninGA
Level 15
Level 15
June 6, 2019
What is the code in box 7 of the form 1099-R?
DoninGA
Level 15
DoninGALevel 15Answer
Level 15
June 6, 2019

No, there will not be an early withdrawal penalty.

Code 2 - Early distribution, exception applies (under age 59½).

Level 2
June 6, 2019
I have a Code 2 - Early distribution, exception applies (under age 59½) on my 1099-R for 2018 but why is Turbo Tax is still applying the early withdrawal penalty?