You'll need to sign in or create an account to connect with an expert.
Yes. Sometimes if you use the money for specific things such as higher education, you can exclude the penalty for early withdrawal.
No. Using the money to pay taxes is NOT an acceptable "other reason" for an exception the early-distribution penalty.
The only permissible "other reason" as an exception to the early-distribution penalty on a distribution from an IRA is if the Form 1099-R has code 1, code J or code S but the distribution was actually made after you had reached age 59½.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
siebertclan
Level 2
lschiebeld
New Member
RustyShackleford
Level 3
DDBloomandzoom
New Member
CMNeedtaxHelp99
Level 1
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.