IRA Early withdrawal penality

3 replies
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I started taking distribution from my inherited IRA this year.I am 66 years old.While filling out my Turbo Tax..It keeps adding a 10% penalty for early withdrawal.How do I get it to stop doing this.

TurboTax Deluxe Online

macuser_22

Alumni - Champ

There is no penalty on an inherited IRA.

What code is in box 7 on your 1099-R?

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

gilrep1Author

Level 2

I figured it out. .Under exceptions ..I clicked other.

Because I'm older than 59 and entered the full amount of my distribution..and It removed the 10% penalty.

macuser_22

Alumni - Champ

That is not the correct remedy because you should never even see that screen with an inherited IRA. Again what code is in box 7? - something is wrong here.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**