I separated from service the year I turned 54 but did not receive my pension until the year I turned 55 from

[amyfoy_2001]

To lower my tax bill situation -do I answer yes or to the separation from service because I didn't receive the money until the year I turned 55 or no because the separation from service was the year before.

[AnnetteB6]

In order to use the 'separation of service' exception to the early withdrawal penalty, you must have separated from service 'during or after the year the employee reaches age 55'.

Based on the information you shared, you would not qualify for the separation of service exception.

See the following information from the IRS for a list of all available exceptions:

Retirement topics - Exceptions to tax on early distributions