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ih8apples
New Member

Is my pension payments paid to me prior to 59 1/2 subject to the 10% penalty? This is not my 401K, but my pension from the company I worked for for 40 years.

I received 2 1099Rs from my employer.  One had code 7 in box 7 and the other had code 2 in box 7.
2 Replies
MinhT1
Expert Alumni

Is my pension payments paid to me prior to 59 1/2 subject to the 10% penalty? This is not my 401K, but my pension from the company I worked for for 40 years.

If you receive your pension in substantially equal periodic payments, you are exempted from the early withdrawal penalty even prior to age 59 1/2.

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dmertz
Level 15

Is my pension payments paid to me prior to 59 1/2 subject to the 10% penalty? This is not my 401K, but my pension from the company I worked for for 40 years.

Code 2 and code 7 both indicate distributions that are not subject to any early-distribution penalty, so TurboTax will not include on your tax return any early-distribution penalty for either of these.

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