I retired from teaching in 2016. I was 55. Why am I being penalized this year?

[2020imbroke-]

Confused about "early withdrawal"-

[SweetieJean]

First, be sure your Date of Birth is correct in Personal Info.  Then. what is the distribution code in Box 7 of your 1099-R?

[2020imbroke-]

This year I received 2 1099’s.

one of them has a 2 and the other a 7.

[Vanessa A]

Penalized how?  Are you being taxed on the withdrawals or are you getting the 10% penalty?  Your 1099 R income is subject to regular income tax. 

If you are getting the 10% penalty, double check your personal info section to be sure your date of birth is correct. 

[dmertz]

As far as I know, it is impossible for TurboTax to generate a penalty on Form 5329 for a form 1099-R with either code 2 or code 7.  It's likely that the amount withheld for taxes was simply not enough to cover the additional tax liability resulting from this income.