I took a with drawl from my IRA to pay off my home , box 7 with code 7 states its a normal with draw , so why am i getting a penalty ? I was over age 59 and half .

[MinhT1]

If you are aged over 59 1/2 at the time of withdrawal, you shouldn't have to pay the penalty for early withdrawal.

Please revisit the My Info section in TurboTax Online and verify that you have correctly entered your date of birth.

[67susanmak]

everything is correct for personal information, I was 59 years 7months and 2 week of age, granted i was close to cut off ,but older than 59 !/2 !

[DoninGA]

After you completing entry of the Form 1099-R the program would have taken you to a screen where you could have entered an exception to the early distribution penalty (Form 5329).  Where you should have entered the amount of the distribution in the box labeled Incorrect Early Distributions.  This would have removed the penalty.

Go back and on the Form 1099-R Entries screen, edit the Form 1099-R.  Follow the interview until you get to the screen labeled These Situations May Lower Your Tax Bill

[MinhT1]

Revisit the entry of your Form 1099-R. 

Because you reach age 59 1/2 during the tax year, after the entry of Form 1099-R, TurboTax will ask Let's check ... did you withdraw this retirement early? (see screenshot attached), to which you should answer NO.

[VolvoGirl]

Are you married?  Is your spouse younger?  Be sure you entered the 1099R under the right person.  

[dmertz]

Perhaps you are seeing a penalty for underpayment of taxes, not an early-distribution penalty.  TurboTax doesn't treat code 7 as being subject to an early-distribution penalty.

[1362f3f52eeb]

I am over 59 1/2. I closed four IRA'S (after taking required RMD's). Where do I report this on TurboTax? I've searched all over and can't find a reporting location.

[67susanmak]

I got it ,thanks !

[67susanmak]

Thanks,  I figured it out. 

[VolvoGirl]

@67susanmak   What was it?  It may help someone else.