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posted Jun 6, 2019 12:50:20 PM

IRA withdrawals while unemployed age 59 but taken in the year I will turn 59 1/2, am I subject to the 10% penalty?

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1 Replies
Level 15
Jun 6, 2019 12:50:21 PM

Depends.

If the distribution is received before the calendar day that you turn 59 1/2 then yes, you are subject to the penalty, if received on or after that day then no, there is no penalty.

If you turn 59 1/2 during the year the TurboTax 1099-R interview will ask if taken before or after that date to access the penalty or not.