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New Member
posted Apr 14, 2024 7:22:50 PM

If I rolled over from another retirement plan, why does it says that I took early withdrawal from the plan I was with for many years? I don't think I deserve a penalty

I return shows that I had a tremendous increase in my income due to the fact that the same monies were transferred (at a loss) to a new account.

0 2 2953
2 Replies
Expert Alumni
Apr 14, 2024 7:29:42 PM

After you finish entering the 1099-R you will be asked follow-up questions regarding what you did with the money.   If you indicate you rolled the money over to a different retirement account within 60 days, there is no early withdrawal penalty.     Where do I enter a 1099-R?    Enter the 1099-R exactly how it appears; then, answer the follow-up questions in the retirement income section of TurboTax.  

Level 15
Apr 14, 2024 7:34:35 PM

What code is in box 7 on the 1099R?  Did they take any withholding out of it?  When you put in in the new retirement account did you also add back in the withholding?  Otherwise the withholding becomes a distribution and taxable and the early withdrawal penalty.  

 

If you rolled it over it should say 0 for the taxable amount  on 1040 line 4b  or 5b with the word Rollover by it.