I took money out of my 401 k so I could take maternity leave after having baby. Do I need to pay full penalty

[DoninGA · Accepted solution]

Yes.  The 10% early withdrawal penalty will apply for the 401(k) withdrawal since maternity leave is not an exception to the penalty.  See IRS Tax Topic - https://www.irs.gov/taxtopics/tc558

To enter a form 1099-R -

• Click on Federal Taxes (Personal using Home and Business)
• Click on Wages and Income (Personal Income using Home and Business)
• Click on I'll choose what I work on (if shown)
• Scroll down to Retirement Plans and Social Security
• On IRA, 401(k), Pension Plan Withdrawals (1099-R), click the start or update button

Or enter 1099-r in the Search box located in the upper right of the program screen.  Click on Jump to 1099-R