I received a 1099-R for early withdraw from 401k. Box 7 has a 1 for no exceptions but I left a job and am over 55 so I am exempt. How do I claim the exemption?>

[DoninGA]

Get a corrected Form 1099-R from your employer since the code in box 7 should be a 2 if the distributions were made to you after you separated from service with your employer if the separation occurred in or after the year you reached age 55.

[dmertz]

If your separation from service from the employer providing this 401(k) occurred before the year you reached age 55, this distribution does not qualify for this penalty exception and the Form 1099-R is correct.  The age-55 exception only applies to distributions from a 401(k) is provided by an employer from which you separated from service in or after the year you reached age 55.